Johannesburg - Eskom is lauding outgoing CEO Brian Molefe for turning the company’s financial and operational performance around.
Molefe, who announced his surprise resignation on Friday, joined the utility in April last year from Transnet, initially in an interim capacity, during a trying time in the utility’s history when it was grappling with keeping the lights on.
In a statement issued on Monday, Eskom noted that Molefe was voluntarily stepping down in a bid to clear his name after the release of former Public Protector Thuli Madonsela’s report on her “observations” about the so-called state capture.
Eskom chairman Baldwin Ngubane said the decision taken by Mr Molefe was regrettable, but understandable.
Madonsela’s report said cellphone evidence revealed that Molefe was at or near the Guptas’ Saxonwold compound in Johannesburg 19 times between August 5 and November 17, 2015.
The report, which investigated the alleged influence and improper relationship of the Gupta family in the removal and appointment of ministers and directors of state-owned entities, further said Molefe and Ajay Gupta made 58 telephone calls to one another between August 2015 and March 2016.
The report further details phone calls between Molefe and Ronica Ragavan, a long-time Gupta associate who was recently appointed acting CEO of Oakbay Investments, the family’s main holding company.
Molefe did not deny being in the Gupta vicinity during those dates, but did not admit being in the Gupta compound or meeting the Gupta brothers either.
He has, however, said that the report is full of inaccuracies and in his Friday statement said that he did not admit any wrongdoing.
Credit given
Eskom says, since joining Eskom in April 2015, Molefe and his executive management team have turned around the company’s operational and financial performance, with 15 months of no load shedding, the impact of which has been enjoyed by every South African citizen.
“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.”
The utility adds its liquidity position has also improved significantly, with liquid assets increasing by 81.6 percent from R24.1 billion a year ago, to R43.8 billion at the end of September.
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“The group has access to adequate resources and facilities to continue as a going concern for the foreseeable future.”
Molefe was appointed acting Eskom boss to “stabilise” the power utility after four of its top executives were suspended pending a board-ordered inquiry into the state-owned company’s affairs.
Three of the four top executives, including then recently appointed chief executive Tshediso Matona, resigned, while the fourth returned to work. In March last year, Eskom board chairman Zola Tsotsi resigned, and was replaced by Ben Ngubane in an acting capacity.
Read also: ‘Molefe's resignation premature’
Shortly after his appointment, Molefe was upbeat about Eskom’s ability to keep the lights on, and the viability of getting its financial house in order. While “not a difficult decision” to join Eskom as interim chief, Molefe said: “I do not have any expectation I should stay permanently”.
New CEO
Eskom, thanking Molefe, says it will soon announce interim leadership arrangements once agreed with Minister Lynne Brown.
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.”
However, Business Report reports that Eskom’s group executive for generation, Matshela Koko, has emerged as the front runner for the utility’s chief executive position following Molefe’s shock resignation on Friday.
"During Molefe's tenure #Eskom #electrified almost 100,000 houses with overall revenue increasing," Brown @DPE_ZA: https://t.co/OtbT8v0jxH
— Eskom Hld SOC Ltd (@Eskom_SA) November 12, 2016
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, the paper reports.
IOL
For more on this, pick upa copy of Business Report tomorrow.