IN a pivotal meeting convened by the NCOP Agriculture, Land Reform, and Mineral Resources Committee, South Africa’s energy giants Eskom and Necsa faced intense questioning from legislators over their financial performance, operational challenges, and future strategies.

The session, chaired by the ANC’s Mpho Modise, revealed both commendable progress and lingering concerns about accountability, environmental compliance, and municipal debt crises that continue to threaten the nation’s energy stability.

Necsa — the SA Nuclear Energy Corporation — emerged as a beacon of hope amid the chaos. Group chief financial officer Precious Hawadi delivered a presentation highlighting Necsa’s remarkable audit turnaround. “Currently, all entities within the Necsa Group have achieved a minimum audit outcome of ‘unqualified’, with two subsidiaries attaining clean audits,” she announced.

This shift — from disclaimed positions to unqualified opinions — was attributed to what Hawadi described as an organisational culture shifting toward compliance.

Deputy Minister Samantha Graham-Maré echoed this optimism, pointing out specific milestones. She noted that Pelchem, a subsidiary of Necsa, had turned its fortunes around, achieving profitability for the first time after years of operating at a loss.

Another feather in Necsa’s cap is NTP Radioisotopes, which supplies about 20% of the world’s medical isotopes. “This international success underscores Necsa’s importance in the global nuclear medicine sector,” Graham-Maré said.

However, not everyone was pleased. The DA’s Sonja Boshoff pressed Necsa on historical irregularities, asking why senior officials implicated in procurement violations remained employed despite ongoing investigations.

Hawadi responded, assuring the committee that: “All instances (of irregular expenditure) are being addressed as part of Necsa’s audit improvement plan.” Yet, scepticism lingered among members regarding whether these measures would prevent future lapses.

If Necsa represented cautious optimism, Eskom’s story was one of fragile recovery, overshadowed by persistent systemic issues. Group chief executive Dan Marokane reported significant strides in stabilizing operations, citing a 96% electricity availability rate compared with the previous year’s crippling load-shedding episodes. “We spent R16 billion less on diesel last year due to improved performance from our coal power stations,” he said.

Yet, beneath this veneer of progress lay troubling figures. Municipal arrears soared to R74.4bn, jeopardising the state-owned power utility’s financial sustainability. Chief financial officer Calib Cassim elaborated, explaining how metro municipalities alone owed R12bn — a staggering increase from just R141 million three years ago. “Eskom cannot act as a bank to municipalities,” he said, calling for urgent intervention.

Boshoff raised critical questions about Eskom’s repeated breaches of the Public Finance Management Act (PFMA) and environmental laws. Referencing Section 195 of the Constitution, she demanded clarity from Deputy Minister Graham-Maré on steps taken to enforce legal compliance.

Graham-Maré acknowledged the seriousness of emissions-related health impacts, noting a “6% higher death rate around power stations due to emissions”. Despite waivers allowing current operations, she admitted that stricter standards needed to be addressed through mechanisms such as the Clean Development Mechanism.

One of the most heated exchanges revolved around Eskom’s reliance on outdated technology and unsustainable practices. The DA’s Nicolaas Pienaar criticised the power utility’s continued use of diesel generators, which cost billions of rand annually. “These funds would be better spent on renewable energy projects like solar plants,” he said, urging greater honesty in reporting Eskom’s challenges.

Pienaar also highlighted sulfur dioxide emissions far exceeding permissible levels at certain power stations. He questioned delays in implementing flue-gas desulfurisation (FGD) plants at Kusile and Medupi, commitments tied to World Bank funding. Cassim promised updates on timelines but admitted costs for FGD implementation at Medupi could reach R40- 50 billion.

Meanwhile, calls to modernise grid infrastructure dominated discussions. Pienaar lamented that switchboards still operated using mechanisms from the 1980s, demanding clarity on when a digitised system might materialise. Marokane deferred technical details to chief information and technology officer Len de Villiers, who assured the committee of comprehensive cybersecurity measures underway.

The most politically charged moment came when the FF+’s Hendrik van den Berg referenced allegations linking South African nuclear entities with Iran. Citing a news article quoting US President Donald Trump, he asked bluntly if Necsa conducted business with Iran. Modise ruled the question out of order, deeming it inappropriate for the session.

Nonetheless, Graham-Maré addressed broader nuclear policy later, clarifying that South Africa remained committed to peaceful applications under International Atomic Energy Agency safeguards. “Any information sharing will pose no threat to global security,” she said.

Gender representation also sparked debate. Modise pointed out that only three female executives were among Eskom’s leadership team, contrasting sharply with Necsa’s recent presentations featuring predominantly female panels. Marokane acknowledged room for improvement, pledging gender parity by 2030.

As the meeting drew to a close, Graham-Maré unveiled plans for a joint task team involving her office, National Treasury, Eskom, and departmental officials. This initiative aims to assess individual municipalities’ challenges and provide targeted support, moving beyond ineffective one-size-fits-all approaches.

Modise expressed cautious optimism, thanking participants for their action-oriented approaches. He, however, underscored the need for vigilance, promising closer monitoring of both Necsa and Eskom. “We are committed to ensuring accountability,” he said before adjourning the meeting.

While strides have been made, the road ahead remains fraught with challenges. For South Africa’s energy sector, the balancing act between innovation, sustainability, and fiscal responsibility continues — a delicate dance requiring unwavering commitment from all stakeholders involved.