POLITICS

Maroga sueing Eskom for R85m - Sunday Times

Former CEO goes to Labour Court to contest 'wrongful' dismissal

JOHANNESBURG (Reuters) - South African power utility Eskom's former chief executive, Jacob Maroga, is suing the company for 85 million rand for wrongful dismissal, local newspaper the Sunday Times said (see report).

It said Maroga had filed a civil claim for all payments due under under a five-year contract that should have run until 2012, including pay, incentives and other benefits.

Eskom, which is struggling to raise billions of rand to pay for an expansion programme to add capacity and ease a national power shortage, confirmed in November that Maroga was no longer CEO after a protracted leadership tussle.

The company had earlier said he had resigned but Maroga denied this.

Eskom said on Sunday it was aware of the claim and would oppose it.

Maroga was now claiming the board of directors, and in particular former chairman Bobby Godsell, conspired to fire him and is demanding damages or to be reinstated, the paper said.

"He accuses the board of conspiring to illegally fire him under a veil of voluntary resignation," it said.

The troubles at Eskom, that also led to Godsell quitting, unnerved mining firms and foreign investors, already worried about whether the company would be able to supply enough power to run mining operations after the national grid ground to a near halt in early 2008.

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