Malusi Gigaba was the Minister of Public Enterprises before being appointed to Home Affairs for a second stint. Picture: Bongani Shilubane/African News Agency (ANA)
Malusi Gigaba was the Minister of Public Enterprises before being appointed to Home Affairs for a second stint. Picture: Bongani Shilubane/African News Agency (ANA)

#EskomInquiry: 'Grossly negligent' Gigaba, Brown must face Zondo Commission

By Siyabonga Mkhwanazi and Lou-Anne Daniels Time of article published Nov 28, 2018

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Cape Town -  The Parliamentary inquiry into Eskom has asked the Zondo Commission of Inquiry into state capture to summons former Ministers of Public Enterprises Malusi Gigaba and Lynne Brown and other officials to explain their role as s hareholder representatives at the entity.

According to the inquiry's report, which was released on Wednesday, the inquiry found that  Gigaba and Brown were "grossly negligent" in carrying out their responsibilities as sole executive shareholders at the power utility.

This was after MPs agreed on Wednesday to send their report on the inquiry's findings to the Zondo Commission to help with its investigations. 

Members of the portfolio committee on public enterprises, which conducted the inquiry, also said those who were aggrieved about their report could approach the Zondo Commission to state their case there.

The inquiry also requested that the Speaker take action in terms of the Powers and Privileges Act against individuals who refused to appear before the committee. These individuals include Ajay and Atul Gupta and former SAA boss Dudu Myeni.

The report, which was unanimously adopted by members of the committee, also named senior officials at Eskom who it said had made contradicting statements to the inquiry. Among the Eskom top brass mentioned are former board chairmen Ben Ngubane and Zola Tsotsi, former CEO Brian Molefe, former acting CEOs Matshela Koko and Sean Maritz and former CFO Anoj Singh.

The inquiry was started last year, prompted by the awarding of a R30 million pension payout to former CEO Brian Molefe.

Former Public Enterprises Minister Lynne Brown
The portfolio committee on public enterprises decided to look into the rot at Eskom after it failed to get answers from Eskom in May last year.

In its findings, the committee said all law enforcement agencies must also investigate malfeasance at Eskom.

“The committee notes the many examples of institutional and oversight failure that have allowed private interests to benefit unduly from business with Eskom over the past decade with great concern,” states the report.

According to the committee, it has evidence that shows that external parties unduly influenced Eskom decisions. Among those mentioned are brothers Ajay, Atul and Rajesh "Tony" Gupta, former president Jacob Zuma's son Duduzane, as well as a number of Gupta employees, including former Oakbay CEO Nazeem Howa.

The report also names companies which benefitted unduly from the state-owned entity including Gupta-owned Tegeta Exploration, Trillian and multinational management firm McKinsey&Company.

“It is disconcerting that it seems the relevant authorities have not yet acted, in light of the allegations that have been brought to their (attention), the press, the courts, the Auditor-General and Parliament,” states the report.

The report will now be referred to the House for approval before it is sent to the Zondo Commission. 

Political Bureau and IOL

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