Eskom executive broke strict suspension rules
• Koko kept contacting colleagues • Continues to protest his innocence
Embattled Eskom executive Matshela Koko, who escaped dismissal through a sham disciplinary process, broke the strict conditions of his suspension by regularly contacting Eskom employees, new evidence shows.
Koko has refused to resign, even as other implicated executives, Anoj Singh and Prish Govender, did so this week.
Koko is due to appear before Parliament’s portfolio committee inquiry into corruption and state capture at Eskom on Wednesday, where he is expected to protest his innocence.
Business Day has seen phone records that appear to show that Koko had spoken to his colleagues including chief financial officer Singh, after he had been suspended on August 2 2017.
His suspension notice expressly prohibited any contact with Eskom staff or suppliers.
These disclosures are likely to add to mounting pressure for Eskom to act against Koko as the new board — headed by Telkom chair Jabu Mabuza — embarks on a process to rescue the utility and restore governance.
Singh and Govender — who was acting head of group capital — are implicated in a corruption scandal involving R1.6bn paid to Gupta-linked firm Trillian and McKinsey.
It is understood other senior officials have also been handed new suspension notices, but Koko appears to be holding out, protesting his innocence.
Koko was suspended after his division awarded his stepdaughter’s company contracts worth R640m, but was cleared of all wrongdoing at a disciplinary hearing.
Several legal opinions recommended that Koko should also be charged for his role in approving the Trillian and McKinsey payments, but this was not part of the charges.
Leaked e-mails have also implicated Koko in favouring the Gupta purchase of Optimum coal mine.
In his written submission to Parliament, Koko denied any wrongdoing in the McKinsey and Trillian payments or Optimum sale, casting himself rather as the victim of attempts
to act against corrupt officials at the new Medupi and Kusile power stations.
He accused the media of running a sustained campaign against him, which he described as “very hurtful”.
He said: “I can make no further comment save to state that I have strived to comply and enforce compliance with Eskom’s policies and procedures and have resisted attempts by a previous chairman of the board … to pursue avenues that do not accord with Eskom’s internal rules.
“I continue to subscribe to best-practice corporate governance,” Koko said.
These protestations are belied by the evidence that he had broken Eskom’s own governance rules during his suspension in 2017.
Phone records seem to show that among the employees Koko was in contact with after his suspension was Nathan Kouter, a security official.
Asked about this last week, Kouter said he could not recall the phone calls. When pressed on Monday, Kouter referred detailed questions to Eskom’s media desk.
The phone records appear to show Koko was in touch with at least five other Eskom employees in the weeks immediately after his suspension, despite his suspension letter making it clear that contacting Eskom employees could “interfere with or jeopardise” his disciplinary hearing. Business Day was able to reach several of the staffers Koko had called. They referred queries to the media desk.
Koko was suspended following an investigation by law firm Cliffe Dekker Hofmeyr, after his division had contracted his stepdaughter’s company, Impulse International.
Koko himself signed a deviation order for a R65.8m contract with Impulse just months before his stepdaughter became a shareholder and director of the company.
The deviation order meant that the contract was not subjected to a competitive bidding process.
Koko was placed on special leave for 60 days, while the Cliffe Dekker Hofmeyr investigation was being conducted.
The phone records show that during the time that he was on special leave Koko made dozens of phone calls to Eskom employees, including the then chairman, Zethembe Khoza, who quit at the weekend. Khoza did not respond to text messages requesting comment.
Although this is not technically in violation of Koko’s special leave conditions, it does appear questionable.
Koko’s disciplinary hearing was marred by allegations that it had been rigged in his favour after it emerged that the charge sheet had been watered down.
The hearing accepted Koko’s explanation that he had submitted a memo to former Eskom CEO Brian Molefe declaring his potential conflict, even though this would normally be captured electronically.
Eskom has repeatedly denied these allegations, maintaining that the process was transparent and fair.
Asked this week to comment on the evidence that Koko had violated suspension conditions, Eskom said it needed more time to investigate the allegations.
Koko has accused Business Day of running an “illegal intelligence-gathering operation” and refused to answer specific questions. When pressed, he said: “I have answered you. I have nothing further to say.”