Brown blasted for mess at SOEs

PUBLIC Enterprises Minister Lynne Brown was roasted by parliamentarians over irregular expenditure amounting to billions of rand at Eskom, Denel and Transnet.

Brown confirmed to the portfolio committee on public enterprises yesterday that she will appoint a new Eskom board and chief executive next month.

She said the Special Investigating Unit (SIU) will begin its probe into Eskom over coal contracts.

The minister was on the receiving end of MPs across all the benches of the House for the irregular expenditure at the parastatals.

Former finance minister Pravin Gordhan questioned the lack of action against the boards and executives of the state-owned enterprises (SOEs) fingered in the e-mails on state capture.

The auditor-general had also presented a damning report on irregular expenditure at Eskom and Transnet, where it has surged.

At Eskom, irregular expenditure increased from R106 million last year to R4 billion this year.

At Transnet irregular expenditure shot up from R25m to R922m.

Brown said progress was being made to shake up the SOEs.

She said Eskom had suspended five executives in relation to the Trillian and McKinsey matter.

The two consulting firms were paid nearly R1bn for their work by the power utility.

Eskom chief financial officer Anoj Singh was one of the senior officials suspended.

Brown said the SIU had agreed to speed up its investigation into Eskom.

She said a new board would be appointed next month and that the process was now vetting the candidates.

“The new board’s first mandate will be the appointment of a permanent group chief executive and restoring the credibility of its operations,” she said.

Brown has asked Eskom’s acting chairperson. Zethembe Khoza, to ensure all disciplinary processes are concluded before the special annual general meeting next month.

Gordhan also questioned what processes had been followed to decide on the new board.

“How clean is this board? How do we get assurance that their integrity is not tainted and there is no influence from outside?” Gordhan asked.

“When are we going to be in a position where those who are guilty are charged.

“The SOEs have become the feeding troughs for all sorts of interests. Billions of rand have been moved around,” he said.

EFF MP Marshall Dlamini said it was astounding that Eskom’s irregular expenditure had skyrocketed from R106m to R4bn in a year. It was shocking that irregular expenditure at Transnet surged from R25m to R922m, he said.

He said the minister could not be comfortable with performance of the SOEs as they were in a mess.