STATEMENT BY MINISTER BARBARA HOGAN ON ESKOM CEO AND BOARD RELATIONS

It has come to my attention that there is an apparent breakdown in relations between the Board of Directors of ESKOM and the CEO.

As ESKOM's shareholder, I am committed to actively engaging with all relevant parties to ensure and secure the best possible solution and outcome for ESKOM and the public.

As Shareholder, government has indicated to all relevant parties that this matter should be resolved expeditiously, with due regard to every single person's dignity and rights. I would like to add that at no point did the President of the Republic, Mr Jacob Zuma, interfere in any way whatsoever with this process.

As government we are mindful that the employment contract is one that is between the Board of Directors and the CEO, which is governed by applicable labour laws. As such, labour laws and corporate governance requirements make it clear that the Shareholder is not permitted to interfere with such an employment contract. Doing otherwise would be a breach of our labour laws and the Shareholder's duties.

The responsibility of the Shareholder, however, is to ensure that any dispute or breakdown in governance relations in an SOE is expeditiously attended to, and that due process is always respected.

We are confident that all parties do have the best interests of the country at heart and that they will resolve this matter with the urgency that it deserves.

Statement issued by the Department of Public Enterprises, November 5 2009

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