Free Newsletter
 Subscribe Now
 BR Blog

 NEWS BY SECTOR
Jacob Zuma in the dark regarding Eskom CEO status  Comments
November 6, 2009

By Justin Brown


President Jacob Zuma has yet to receive a full briefing from public enterprises minister Barbara Hogan regarding whether or not Eskom chief executive Jacob Maroga has resigned from his position, presidential spokesperson Vincent Magwenya said on Friday.

Magwenya said Zuma had been on a trip to Equatorial Guinea and Mozambique.

Ayanda Shezi, a department of public enterprises spokesperson, was not available to comment on Friday and has not responded to messages asking for comment since late on Thursday afternoon.

Bobby Godsell, the Eskom chairman, told Eskom’s staff on Thursday that Maroga had resigned and the power utility has distributed a memo to their employees confirming this.

However, Godsell cancelled a meeting with the media at 1pm on Thursday apparently to attend a meeting.

Godsell has not been available to take calls on his cell phone.

Sapa on Friday that Vytjie Mentor, the chairwoman of Parliament's portfolio committee on public enterprises, had been personally told by Maroga that he had not resigned.

"I got the shock of my life when I heard he had resigned. I phoned Mr Maroga and he told me 'No, I have not resigned'," Vytjie Mentor told Sapa.

However, the ANC Youth League disputed this and demanded to see the resignation letter. Mentor also called for proof that he had quit, and demanded that the matter be clarified soon for the sake of national stability.

"People must have the confidence that there will be energy security," she said.

She called on the Eskom board to brief Parliament on the matter on Friday morning, but later cancelled the meeting because she "realised it was too short notice". Godsell was to have led the delegation.

Mentor said she wanted to give Eskom more time to resolve the matter for the sake of fairness, but warned that if this were not the case by next week, the state should step in.

She would not hesitate to call Public Enterprises Minister Barbara Hogan to the committee to explain the situation, she said.

"This is taking too long to resolve. We have the right to query. If the board and Mr Maroga cannot clear the confusion, the state must clear the confusion. When there is a capital crisis the state must step in with a bond, a loan .... that is an unfair relationship.”

"It cannot be that we own these things as the government of South Africa and our ownership is only in terms of equity injections, loans, guarantees."


Mentor said rumours suggested that the saga revolved around personality problems between Maroga and Godsell, though they had only two weeks ago at a briefing to the committee appeared to be on "cordial" terms.

The Sowetan reported that Maroga offered to resign last week, but that he also wrote a letter saying he had no intention of resigning.

A secretary in Maroga's office referred queries to the media desk which said it did not know what the situation was.

The Black Management Forum said that state-owned enterprises were being turned into "slaughterhouses" for black professionals such as Maroga, who it believed had been pushed into resigning.

Social media sites crackled with comment reflecting on whether Maroga's predicament was because of his race.

One Twitter user wrote: "Strange to fire Maroga for ignoring a report. Is SA purging black leaders. Eskom woes started long b4 Maroga came. The board?? enuff said."

Another wrote: "Oh of course Malema will say the Maroga resignation is a racist one, of course. Yawn Julius, so boring now dude... Seriously!" of Malema, who was leading a delegation to Nedbank to discuss transformation concerns related to the banking group.

The Mail&Guardian reported that at a board meeting last week, Maroga offered to resign, and so did Godsell.

Both were asked to leave the meeting and board elected to accept Maroga's offer and to keep Godsell, according to an unnamed source.

Maroga's "demise" was related to a report on coal procurement written by energy consultant Susan Olsen, they continued. She warned Maroga six months before the electricity crisis of 2008 that Eskom's coal division would collapse under its own weight unless serious steps were taken.

She was fired by Maroga, and, the article continued, in his comments on the report, he wrote that there was a culture of white supervision at Eskom and that there was a view that blacks were not able to lead and achieve anything of significance.

"The manner in which the Olsen report was given status and attention is one example of white supervision mentality," he reportedly wrote.

That report included questions on why Eskom's coal-fired stations did not have long-term supply contracts.

Showing page 1 of 1 comment pages, 6 total comments
13 Weeks ago Anonymous wrote :
I think there are quite a bit of dead wood in Escom and it needs a good house clean .! Bee suppliers and afirmative action which is a cost added to the cost of power. I think Escom should be privatized and it needs to be run like a business which it is. Else deploy more cadres and buddies and this country is going no where. We will have the most expensive electricity in the world and the most unreliable in the world.
13 Weeks ago Tebza wrote :
Hogan and her boards must go!!!!!! She is failing to show leadership in the problems that are facing the parastatals Transnet / Eskom.
13 Weeks ago Anonymous wrote :
This Barbara Hogan is good at making herself look good, but rather incompetent
13 Weeks ago Anonymous wrote :
There's a lot we are not informed about here!! We have recently been affected by load shedding. Is it also affecting Maroga?
13 Weeks ago Dib111 wrote :
Eskom's problems will not be solved by Maroga's removal and mind that the Board was there all time busy approving every document that came to them. Fire the whole Board including Bobby Godsell.
13 Weeks ago Eita wrote :
If he goes, the whole board should and must go as well. Let's not pick the weak. In actual sense something is going on, some targeted attacks. we need a plan to sort this out, it's getting out of hand. we need to mobilise.
HAVE YOUR SAY
Please enter your comment into the text box below.
Note: all comments are moderated (see our moderation policy) and may take some time to display, or may not appear at all.
If you would like to use an alias, please type it below. If you do not enter an alias you comment under a Anonymous byline.
Type your email address below - your comment will not be accepted without it. This is required as part of our moderation guidelines, but your address will not be published or distributed.
Lastly, to help fight spam, enter the letters in the image below as you see them.

     

 OPINION/ ANALYSIS
 Business Watch
Vodacom hanging on to secret report, for now
The secrecy around a damning report over allegations of nepotism and fraud is continuing with Vodacom's plans to challenge the subpoena.[Full Story...]

 
 Home
SA's inflation targeting band needs to be widened
Despite South Africa experiencing a severe recession recently, one that had likely not ended in the labour market by the end of last year, inflation was 6.3 percent year on year in December.[Full Story...]

 
 The Diary
McDonald's now speaks Italian
Fast food chain McDonald's has teamed up with the Italian government to cook up a hamburger with a national twist, but the unusual initiative is giving some food lovers cultural indigestion.[Full Story...]

 
More Opinion & Analysis stories

 NEWS BY SECTOR
 News
Labour market recovery will take months: union
A recovery in the labour sector will take months. [Full Story...]

 
 International
G7 outlook upgraded but lagging emerging stars -Reuters poll
The world's richest economies are set to grow faster this year than forecast a month ago. [Full Story...]

 
 International
UK economy to pick up speed, rates to remain low -Reuters poll
The British economy will expand at a faster clip in the second half of this year than previously thought but the Bank of England is still unlikely to shift interest rates until at least October.[Full Story...]

 
 Markets
US stocks bounce back on easing eurozone debt fears
US stocks have bounced back from heavy losses a day earlier as fears over the eurozone debt crisis eased slightly.[Full Story...]

 
 Finance
Rogue debt collectors surface in tough times
Many debt collection agencies and lawyers are abusing employer ignorance of garnishee orders to charge excessive fees and bend the law, a debt counselling firm claims.[Full Story...]

 
More Sector Reports stories


BUSINESS SERVICES
Awesome UK Lotto's
Business Directory
Car Insurance
Car Insurance for Women
City Guide
Insurance Quote
Life Insurance
Life Insurance for Women
Maps & Direction
Medical Aid
Meetings Africa
Mobile Business Directory
Online Shopping
Personal Loans
Play Huge Lottos
Property Search
Travel Specials

MOBILE SERVICES
 Get Business Headlines & Indicators
 on your phone - dial *120*IOL*5#
 Click here to find out more (SA only)




News


Markets


Technology News


Company News


International


Today's Quote
"Make no mistake, they are bowed, but not completely beaten" Who said that?


Business Forum
Keep an eye on the stock exchanges - and your investments - from our markets page.


Weekly Interview
Belt tightening has made a dent even in those industries aimed at making people look prettier, perkier, poutier and, of course, younger.
Read more ...