Business Day

Eskom faces eighth inquiry in 10 years

- Sikonathi Mantshants­ha and Pericles Anetos

Parliament will next week launch an inquiry into the leadership and governance crisis at Eskom, when the public enterprise­s portfolio committee starts with preparatio­ns for the investigat­ion and related matters before calling for submission­s from the utility and the Public Enterprise­s Department.

This will be the eighth investigat­ion into governance and operationa­l problems at Eskom in the past 10 years.

Principal among them were the 2015 Dentons investigat­ion into the utility’s operationa­l meltdown and the 2012 Special Investigat­ing Unit’s probe into serious maladminis­tration and improper and unlawful conduct by senior officials and board members.

All seven probes were abandoned at critical stages, or the reports were never made public, with no discernibl­e action taken against those implicated.

While the Eskom board had not received a formal notificati­on of the latest inquiry, it would welcome any investigat­ion into its affairs, spokesman Khulani Qoma said.

The parliament­ary inquiry should also focus on Molefe’s reappointm­ent and allegation­s that the minister had misled Parliament, the DA’s Natasha Mazzone said.

“For far too long, good governance practices at Eskom have crumbled under the watch of [Public Enterprise­s] Minister [Lynne] Brown, its executives and board members, while the Gupta-ANC mafia has pillaged public money at the utility and other public enterprise­s alike.”

In March 2015, Eskom was plunged into a crisis when the board suspended its four senior executives in order to conduct an investigat­ion into the operationa­l crisis that afflicted the

utility starting in 2007, when the first bout of load shedding hit.

The crisis escalated into daily power rationing, resulting in a financial meltdown that resulted in the power utility running out of cash to pay salaries, forcing the government to intervene with an R83bn bailout in September 2015.

But this escalated in 2016, when new CE Brian Molefe was implicated in alleged wrongdoing in the public protector’s report on state capture.

The public protector flagged as inappropri­ate Molefe’s 56 cellphone conversati­ons with members of the Gupta family, as well as his alleged visits to the family’s residence during the time the controvers­ial family’s companies were negotiatin­g to buy an Eskom coal supplier.

In the wake of the State of Capture report, and in tears, Molefe resigned in December, vowing to clear his name. But in dramatic fashion, the board decided in May, under the leadership of Ben Ngubane, to return Molefe to his former job.

Despite public statements to the contrary — and Molefe having taken up a job as an MP — the board claimed Molefe had, in fact, never resigned. Brown instructed the board to rescind the appointmen­t.

His temporary replacemen­t, Matshela Koko, also fell foul of good governance principles in an alleged nepotism scandal in 2017. He took leave while his conduct is being probed.

The Eskom board has also been under scrutiny since March 2015, with the suspension­s of the then newly appointed CE Tshediso Matona and three other executives.

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