Eskom announces independent enquiry into state of its business

The board of South African power utility has resolved to commission an independent enquiry, conducted by external parties, to examine the current status of the business and the challenges it faces. Four senior executives will be asked to step down for the duration of the probe.

eskom article

Zola_TsotsiEskom chairman Zola Tsotsi

The board of South African power utility has resolved to commission an independent enquiry, conducted by external parties, to examine the current status of the business and the challenges it faces. Four senior executives will be asked to step down for the duration of the probe.

The Eskom board has today resolved to commission an independent enquiry on the current status of the business and its challenges.

Download media statement

The board, in its quest to address the current challenges faced by Eskom, has deemed it prudent to seek an independent view on the status of a number of issues. These include:

• The poor performance of generation plant
• Delays in bringing the new generation plant on-stream
• High costs of primary energy
• Cash-flow challenges

“To ensure that this process is as transparent and uninhibited as possible,” said Eskom chairman Zola Tsotsi, “the board has also resolved that four of its senior executives, including the chief executive, should step down for the duration of this enquiry.”

The executives who have been asked to step down while the enquiry is underway are Tsholofelo Molefe (Finance Director), Dan Marokane (Group Capital) and Matshela Koko (Commercial and Technology). One of the current non-executive board members, Zethembe Khoza, has been asked to assume the position of interim chief executive. Khoza will be supported by Nonkululeko Veleti (Finance), Abram Masango (Group Capital) and Edwin Mabelane (Commercial and Technology).

“All these senior executives have been with the organisation a long time and we are confident that they will maintain business continuity during this period,” said Tsotsi.

The board also resolved that the independent enquiry be conducted by external parties, who will be selected within the next week. They will be given unfettered rights of access to all information deemed necessary for this probe to be successful.

The board has emphasized that this process is a critical step towards ensuring that the situation facing Eskom improves as expeditiously as possible.

“To that end, we would like to assure our customers and employees that this was done in the best interest of all our stakeholders, and we hope to come out of this with a better grasp of all the challenges facing the business, and most importantly, with solutions,” said Tsotsi.

The interim appointees

Ms Nonkululeko Veleti is a registered chartered accountant and has been with the organisation for almost 14 years working in the finance department.

Abram Masango, a qualified engineer, has been with Eskom for over 18 years and is currently project director at Kusile. He brings to the role many years of valuable experience, having occupied various senior positions within the organisation.

Edwin Mabelane has been with the organisation for 21 years. He is a qualified engineer has been a very senior executive before this appointment. He brings into the role many years of valuable experience.

Issued by Eskom Media Desk
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Email: mediadesk@eskom.co.za