Former Eskom CEO details his sudden ouster from Eskom after five months on the job

Eskom CEO Tshediso Matona has told the Zondo Commission that his sudden ouster from Eskom in 2015 may have have been motivated by sinister objectives.

Eskom CEO Tshediso Matona has told the Zondo Commission that his sudden ouster from Eskom in 2015 may have have been motivated by sinister objectives.

Published Sep 7, 2020

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Former Eskom CEO Tshediso Matona has told the Zondo Commission that his sudden ouster from Eskom in 2015 may have have been motivated by sinister objectives.

Matona took the stand on Monday. The commission will this week focus its hearings on Eskom.

Matona was appointed as the CEO of the power utility in October 2014 and less than six months on the job he was suddenly suspended following a board meeting chaired by then board chairperson, Zola Tsotsi.

Matona was asked to explain the events that led to his suspension on March 11, 2015.

He explained that a decision had been taken for a last-minute board meeting to convene on March 9, 2015. He said at the meeting, Tsotsi presented a board resolution which had called for an inquiry into Eskom.

Tsotsi told the board that the decision to conduct an inquiry had been supported by then-president, Jacob Zuma and the minister of Public Enterprises Lynne Brown.

The resolution, which Matona said was never drafted by the company secretary as policy states, broadly spoke about Eskom's dire financial situation and its struggle to keep the lights on.

It was envisioned that inquiry would be a search finding mission and also come up with resolutions on to solve the utility issues, Matona recalled.

The inquiry's evidence leader, Adv Pule Seleka SC, presented an affidavit from business consultant, Nick Linnell, who explained that he had drafted that resolution as he had been asked to do so by former SAA, chairperson Dudu Myeni.

Matona said when a vote on the resolution was called, most of the board's members were reluctant to support the decision as they felt they knew very little about reasons behind the decision to hold an inquiry.

Matona said he expressed his reluctance to support an inquiry because Eskom's issues were well known at the time, its struggles with load shedding and its financial position. He said what was needed was solutions and not an inquiry.

That board meeting came up with no decision and it was decided that a second meeting would be convened on March 11, 2015. Matona said he presented a plan to the board at this meeting. He reiterated his unhappiness with the board's desire to call for an inquiry.

Matona said what followed took him by surprise as he was asked by the board to step-aside from the company while an inquiry took place.

"I asked if they were suspending me and they said not quite. I had told them that we did not need an inquiry and that we had plans as management. When I came back I was given a letter of suspension. My understanding of due process was to be given an opportunity to present to the board on why I should not be suspended," Matona said.

He took this lack of consultation as a breach of labour law and he approached the Labour Court to set aside the suspension.

"I had thought that this was a brazen and irrational act by the board. It was not only myself and the CFO, four executives. We were suspended for not having done anything wrong," he said. The Labour Court rule in his favour but the matter was referred to the CCMA

At the CCMA, Eskom made it clear that Matona could not come to the company and a deal would have to brokered for his departure.

He was offered a 12-month salary package, which he took because he felt he could not afford to fight Eskom on the matter.

Matona said he was six months into his job and that he had only met with Eskom's board twice since the board was appointed in December 2014.

Matona said his departure could have been manufactured from the outside of the company.

"I could not establish exactly what was the reason. It seemed that between the March 9 and March 11 meeting, something happened. My only conclusion was that this was coming from outside."

"The events that followed at Eskom after my ouster from the company and when Mr Molefe was appointed, and other things that were reported made me suspect that it was probably because I was removed to make way for some of that. I have no facts either than what I have seen,“ he said.

Following Matona's departure, Molefe was appointed as Eskom CEO, he was followed by former Transnet CFO Anoj Singh.

The two had allegedly been responsible for awarding questionable tenders at Eskom and at Transnet which favoured the Gupta family's companies.

Political Bureau

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