Hogan slams interference in Eskom's affairs
November 12, 2009
Cape Town - Eskom on Thursday confirmed the departure of chief executive officer Jacob Maroga as Public Enterprises Minister Barbara Hogan lashed out at those who had launched a political campaign to keep him in the post.
"Mr Maroga's resignation was clear and unambiguous and was accepted," acting Eskom board chair Mpho Makwana told staff at Megawatt Park.
Hogan told the National Assembly that Makwana would also serve as Eskom's top executive until Maroga's replacement was found, hopefully within 90 days.
She had faced intense pressure to come to Maroga's rescue from groups who had turned the dispute between him and the board, under the leadership of chairman Bobby Godsell, into a "political crusade" and a "racial football", she said.
Maroga received massive public support from the ANC Youth League, the National Union of Metalworkers of South Africa and the Black Management Forum (BMF), which charged that parastatals had become "slaughterhouses" for black chief executive officers.
"We tried to pursue options of facilitation, mediation and arbitration, even a negotiated settlement. During this period, a demand arose," the minister said.
"As we were to discover, the subtext of this demand was in actual fact a demand that I, as minister, override the board and confirm a person in his position against the wishes of the board and all principles of corporate governance."
Hogan paid tribute to Godsell, who quit on Monday after meeting with President Jacob Zuma at the weekend. He cited a lack of support for the board's decision to accept Maroga's resignation.
"I want to thank Mr Godsell for his exemplary leadership in the last 15 months," she said, adding that she believed he had "integrity and only the best interests of the country at heart".
Maroga last week offered to quit then withdrew his resignation as a standoff came to a head with Godsell, who questioned management's ability to meet urgent challenges at the loss-making utility.
The former AngloGold boss's list of concerns reportedly included Eskom's funding model, as it embarks on R385-billion infrastructure expansion programme, and the need for a sustainable national energy strategy.
Maroga returned to work on Monday, but was later barred from his office.
Hogan said in the wake of the "turbulent time", she wanted to ensure the board of Eskom and other state-owned enterprises that they had full authority to steer their companies without inappropriate interference.
"We say to them: Hell, yes, you must govern," she said. "The integrity of a board is paramount."
Hogan confirmed, however, that Zuma had tried to intervene to resolve the impasse at Eskom.
"This intervention was not taken lightly and was not done to undermine the board, but rather lend support to resolve the dispute.
"Government's overriding concern was the strategic importance of Eskom to the economy and the country and addressing the highly charged political environment that was creating the false notion that Eskom's operations were being compromised."
She insisted that fallout was "minimal" from the leadership crisis for the company's efforts to secure foreign investment for its expansion plans.
"Eskom is on track. The lights are on," she said, adding that it was "feverishly" working to ensure that its price increase applications were submitted to the National Electricity Regulator of South Africa by month-end.
Makwana said the board's task was to ensure that Eskom continued to provide South Africans with electricity in a secure, steady fashion and to unite a team torn by the breakdown of trust between the board and Maroga.
"It is also our task to help heal the organisation and to ensure that the pain some employees feel is replaced with a sense of belonging, a sense of price and team spirit."
He said Brian Dames, the head of generation, and Erica Johnson, the head of the customer and network services, would run Eskom's operations.
Trade union Solidarity and opposition parties welcomed Maroga's departure, but the BMF demanded that the whole board of Eskom resign for violating the Eskom Conversion Act by making Makwana both interim board chairman and chief executive.
"We expect the honest South African public to be outraged by this blatant breach of the act and lawless deed by the Eskom board and overwhelmingly call for its resignation."
The Democratic Alliance said the electricity parastatal would now get an opportunity to attend to its "tattered reputation", while the Freedom Front Plus urged the parastatal to appoint a new chief executive officer on the basis of "merit and expertise". - Sapa
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