Home » Brighter Future Ahead as SA Govt Announces Major Shake Up at Eskom

Brighter Future Ahead as SA Govt Announces Major Shake Up at Eskom

The South African Government today announced a number of seismic measures to strengthen governance at Eskom (and release the company from Capture!), including the appointment of new board members and stabilising management at the energy parastatal. Eskom executives facing allegations of serious corruption are out – including Matshela Koko and Anoj Singh! There was no […]

By SAPeople
20-01-18 21:53
in Business

The South African Government today announced a number of seismic measures to strengthen governance at Eskom (and release the company from Capture!), including the appointment of new board members and stabilising management at the energy parastatal.

Eskom executives facing allegations of serious corruption are out – including Matshela Koko and Anoj Singh! There was no mention of former Finance Minister Nhlanhla Nene being appointed as had been hoped and rumoured earlier today after Eskom Chairperson, Zethemba Khoza resigned “for the good of the country”.

However there was resounding jubilation for those who have been appointed – mainly business people with excellent records – in a definite sign by the ANC Government of its serious intention to self-rectify and root out corruption.

The announcements were made following a meeting of President Jacob Zuma, Deputy President Cyril Ramaphosa, Public Enterprises Minister Lynne Brown and Minister of Finance Malusi Gigaba on Friday 19 January 2018 to address urgent challenges at the company. This intervention will be ratified by Cabinet at its next meeting.

Eskom is critical to the South African economy, said the Presidency in a statement on Saturday.

“As a key enabler of economic growth and social transformation, any further deterioration of Eskom’s financial and operational conditions could have a severe impact on the country,” it said.

“The company has been facing several challenges, including a weak financial position, declining revenues and governance failures, which are threatening the sustainability of the company going forward.”

As a result, the government has decided on the following immediate measures to strengthen governance and management. The Presidency said this is the first step towards restoring confidence in the company, improving its financial position and restoring its operational performance.

The appointment of new Eskom board members:

The new board will consist of:
1. Mr Jabu Mabuza as Chairperson
2. Mr Sifiso Dabengwa
3. Ms Sindi Mabaso-Koyana
4. Mr Mark Lamberti
5. Prof Tshepo Mongalo
6. Prof Malegapuru Makgoba
7. Ms Busisiwe Mavuso
8. Ms Nelisiwe Magubane
9. Dr Rod Crompton
10. Mr George Sebulela
11. Dr Pulane Molokwane
12. Dr Banothile Makhubela
13. Ms Jacky Molisane

Stabilising management:

Government has recommended the appointment of Mr Phakamani Hadebe as the Acting Group Chief Executive with immediate effect. Hadebe is renowned for turning Land Bank around during his tenure as CEO, and triggered a walk-out last year when he was passed over for a leading position at Absa Capital. He has also worked at the Treasury.

Further, the board has been directed by Government to appoint a permanent Group Chief Executive and Group Chief Financial Officer within the next three months.

The board is directed to immediately remove all Eskom executives who are facing allegations of serious corruption and other acts of impropriety, including Mr Matshela Koko and Mr Anoj Singh.

Government further calls on all Eskom employees and other stakeholders who may have evidence of wrongdoing to bring this to the attention of law enforcement agencies so that culprits can be brought to book.

The Ministers of Public Enterprises, Energy and Finance will work together under the leadership of the Deputy President, to deal with other structural issues, which include the funding model and other industry challenges identified by the Inter-Ministerial Committee on SOE Reform.

Deputy President Cyril Ramaphosa, Chair of the Inter-Ministerial Committee on SOE Reform, said: “We are confident this intervention will restore the important contribution Eskom makes to our economy. We are determined to address the damage that has been done to this institution and place it on a new path of efficiency and integrity.

“Government calls on all stakeholders, employees, suppliers and members of the public to work together to ensure that these measures are succesful.

“For South Africa to flourish, Eskom must work and work well,” he said.

With the appointment of the new board and acting Group Chief Executive, government firmly believes that Eskom can be returned to financial sustainability and contribute positively to the objective of shared prosperity.

New Chairperson Jabu Mabuza – who started his career as a taxi driver – was former Group CEO of Tsogo Sun, MD of Southern Sun Gaming, Chairman of the board of South African Tourism… and until this announcement his numerous roles included chairman of Telkom, executive chairman of Sphere Holdings, and president of Business Unity South Africa.

The ANC said in a statement after the announcement that the appointment of experienced, qualified and credible leadership to the Board of Eskom, and removal of those implicated in corruption, is in line with their key priorities and is “practical action responding to our commitment to confront corruption and state capture in all its forms“.

Sources: The Presidency, ANC