Unrealistic black economic empowerment (BEE demands which some companies oblige suppliers to comply with, could end up preventing previously disadvantaged Individuals (PDI) from benefiting from preferential procurement programmes.
This concern has emerged from Eskom’s interim deal with Waterberg Coal, which has stalled since 2010, when it was hailed as a ‘landmark’ development. Since then, Eskom has been introducing new requirements.
Currently Eskom has told Waterberg Coal that it needs to increase its BEE ownership by, at the very least, 50% which is a benchmark way above the Mining Charter’s threshold of 26%. The company’s Chairman is Matthews Phosa, an ANC veteran.
The most pressing issues that Waterberg Coal need to be tackled include pricing, coal quality specifications, scheduling, now the everchanging BEE requirements.
