WORRYING STATE OF AFFAIRS AT ESKOM

23 MAY 2017

The ANC Study Group on Public Enterprises is not satisfied with the responses of the Minister of Public Enterprises comrade Lynne Brown and Eskom board regarding the reinstatement of Mr Brian Molefe.

In their presentation to the Portfolio Committee earlier today, comrade Brown and the Eskom board showed no comprehension of the magnitude of the crisis they have plunged Eskom into. Both the Minister and the board appeared not to attach any weight to the public discomfort around this matter.

 The seemingly powerless minister in terms of her oversight role, in spite of the provisions of the Memorandum of Incorporation which empowers her to exercise oversight over the entity is cause for concern, especially since she was part of the drafting of the 2016 MOI.

The department and the board failed to clarity the basis of Mr Molefe’s reinstatement as Chief Executive Officer (CEO) of Eskom. There were a series of questions posed to both the Minister and the board which were not satisfactory answered. The explanations provided around Mr Molefe’s state of employment at Eskom, or lack thereof, raises serious questions around possible fraud on his part at the time of being sworn in as a member of parliament.

We reiterate the call by our organisation that the decision to reappoint Mr Molefe as CEO of Eskom must be rescinded with immediate effect.

It is view of the study group that the current board of Eskom has total disregard for the principles of good governance. The study group takes a dim view on the state of affairs at Eskom and thus calls for an urgent parliamentary inquiry into the Eskom board.

Statement issued by Zukiswa Rantho MP, ANC Acting Chairperson on the Study Group on Public Enterprises, 23 May 2017