Mpho Makwana (Photo: Jairus Mmutle/GCIS)
Eskom’s board of directors believes that some of the statements made by André de Ruyter, former head of the power supplier, in an interview with eNCA, brought the company into disrepute and therefore his notice period was shortened.
Mpho Makwana, Eskom chairman, told parliament’s standing committee on public accounts (Skoor) on Wednesday that the board called a special meeting after De Ruyter’s interview and he was given the opportunity to provide his perspective. He apparently said that if the council is convinced that the content of the interview caused Eskom embarrassment, it will agree to shorten the term of his notice period.
According to Makwana, De Ruyter was excused, after which the council deliberated and decided to shorten his notice period.
According to Makwana, Eskom’s internal state capture and corruption task force has been ordered to determine whether any of De Ruyter’s allegations should be investigated further. “The board further decided to appoint an independent legal panel to independently guide the board on the appropriate performance of its fiduciary duties and responsibilities in this regard, all in an effort to restore Eskom’s reputation and corporate integrity.”
Makwana said De Ruyter tried to mislead the public by suggesting that there was no internal action by Eskom. According to him, several disciplinary hearings have taken place since the establishment of the task force and numerous arrests have also been made. According to Makwana, the council became aware through the media of the private investigation into corruption at Eskom which was ordered by De Ruyter.
De Ruyter’s several serious allegations about large-scale corruption at Eskom have been brought to the fore in the past two days with high-ranking law enforcement agencies and Eskom appearing before Skoor to provide answers about De Ruyter’s controversial allegations and what has been done about them.
The head of the Falcons informed Skoor on Tuesday that they do not have the identity of the senior politician to whom De Ruyter referred. General Fannie Masemola, national police commissioner, admitted that he became aware of the private investigation into corruption at Eskom ordered by De Ruyter last year. However, the Falcons and the Minister of Police denied that they were aware of the investigation.
De Ruyter appeared before Skoor at the end of last month to provide more information about his allegations. He repeated allegations that cartels and syndicates hijacked Eskom and again alluded to the involvement of a senior politician. However, he refused to name names.
‘Eskom board’s culture of passivity hinders accountability’
André de Ruyter, former head of Eskom. (Archive photo: Eskom)
Benedicta van Minnen, DA member of the committee, believes there is a striking contradiction between the council’s strategic intentions and the lack of commitment to tackle alleged misconduct.
“The interaction between the committee, the Eskom board and law enforcement agencies has exposed a culture of obfuscation and aloofness. These members denied knowledge of the content of reports presented in meetings they attended and appeared unaware of the investigations initiated by De Ruyter. Instead, they focused on the perceived reputational damage caused by De Ruyter’s interview with eNCA.”
However, Van Minnen believes that the real threat to Eskom’s credibility lies rather in these senior managers’ own lack of action.
“The current acting head of Eskom, who is currently in China, was absent from the meeting, and the board refused to explain the purpose of his trip or how it would serve to alleviate the state of affairs. In addition, his alternative acting chief was not available, and the representative of the legal department was also absent, further underscoring the board’s lack of interest.”
According to Van Minnen, the past week’s proceedings before Skoor paint a disturbing picture of a board characterized by passivity and a lack of corporate ownership. “It is clear that the inadequacy in the Eskom board’s culture limits their ability to implement meaningful change, as well as to effectively stop the pervasive corruption that threatens the organization’s core and South Africa’s future.”
