Johannesburg - Eskom’s group executive for generation, Matshela Koko, has emerged as the front runner for the utility’s chief executive position following Brian Molefe’s shock resignation on Friday.
At least two sources who are familiar with the developments said Koko was the most likely successor to Molefe. He was among four executives suspended by former chairman Zola Tsotsi last year.
While his former colleagues, including former chief executive Tshediso Matona, settled with the utility, Koko held out and eventually returned to the crucial generation head role.
Eskom spokesman Khulu Phasiwe said on Friday that it was too early to pronounce on Molefe’s replacement.
Phasiwe said Eskom would soon announce interim leadership arrangements once these were agreed with Public Enterprises Minister Lynne Brown.
Other than Molefe, Koko has been the most vocal Eskom executive about the nuclear build programme and Eskom’s displeasure with the costs of renewable energy.
In September he said Eskom could pay for the nuclear build programme by cash reserves, which he said would have accumulated to R150 billion in 10 years’ time.
Koko previously headed Eskom’s technology and commercial business.
Too clean
Emerging markets economist Peter Attard Montalto of Nomura said that Eskom would probably appoint someone willing to facilitate “rent extraction” and who would ensure the implementation of the nuclear programme.
“The last good chief executive, Matona, was out after just a few months because he was too clean. They will not make that mistake again,” he said.
Brought in to steady a foundering Eskom ship, Molefe will on December 31 leave the power utility with question marks over his character and reputation.
Given the operational improvements at Eskom under his watch, the departure is an anticlimax.
Eskom said that since he joined the utility in April last year, Molefe and his executive management team had turned around the company’s operational and financial performance, with 15 months of no load shedding.
“The improved performance of the power generating units coupled with additional capacity from some of our new build projects has resulted in a stable power system, with excess capacity being exported to neighbouring states,” Eskom said.
But rumoured closeness to the Gupta family was a dark cloud whirling above his head. It did not help that Molefe was the only chief executive in the country who went out on a limb to defend the Guptas.
His public utterances laid a fertile ground for suggestions in the public protector’s report that Eskom was bending over backwards for Tegeta Exploration & Resources.
“The news of Molefe’s resignation is not totally unexpected,” Johan Muller, the programme manager for energy and environment for Africa at Frost & Sullivan, said on Friday.
Muller said Eskom had to be seen as credible and capable in the market, especially to investors.
Given the recent state capture report there were serious question marks surrounding Molefe’s relationship with the Guptas, indirectly also implicating Eskom.
“Since the report recommends further judicial investigations, one can understand that Molefe did the right thing to resign, in order to avoid any loss of focus and avoid conflict of interest in the next 12 months while these investigations are launched.
“What Eskom needs is a leader that understands energy, business, economics, strategy, politics and where there is no doubt as to any corrupt activity on his part,” Muller said.
Montalto said that Molefe had no credibility left after the public protector report. “We need to understand, however, the rot at Eskom goes much deeper - the whole board needs to be replaced and there are many others there also implicated in the public protector report,” he said.
Meanwhile, Brown said on Friday that she was saddened by Molefe’s resignation.
“I want to reassure the country that as shareholder representative, I will work closely with the board to ensure that the company remains stable.”
* With additional reporting by Bloomberg
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