Matshela Koko to face disciplinary action

Koko has been accused of awarding contracts worth billions to a company where his stepdaughter is a shareholder and director.

Former acting Eskom acting CEO Koko Matshela.

Former Eskom acting CEO Matshela Koko will face disciplinary action for allegations of a conflict of interest.

During the announcement of Eskom’s integrated results for 2015/2016 at Megawatt Park this morning, current acting chairperson Zithembe Khoza informed the media that the decision had been communicated to minister of Public Enteprises Lynne Brown.

“Despite these [positive] results, the board notes with concern with qualified opinion on Public Finance Management Act [PFMA] and two reportable irregularities [found by auditing firm SizweNtsalubaGobodo].

“The board has taken adequate steps to ensure that irregularities are reduced to an acceptable level. The board has impressed upon the executive that these issues demand urgent attention,” said Khoza.

He then informed the media the “investigation into [Matshela] Koko and alleged conflict of interest on Impulse [International] has been completed. Mr Koko will face disciplinary action”.

Koko has been accused of awarding contracts worth billions to Impulse International, where his stepdaughter is a shareholder and director, without following Eskom’s supply-chain management policy.

Khoza also reported the Tegeta arbitration award was settled at R557 million. The allegations of financial impropriety – where Trillion was subcontracted by McKinsey, but Eskom asked to “pay directly” an amount of R495 million – have been referred for an independent review.

The power utility’s acting CEO, Johnny Dladla, told the media: “I have hammered macrogovernance across Eskom operations, declaration of interests, governance and ethics, consequences management and perceived corruption.”

http://https://www.citizen.co.za/news/news-national/brown-tosses-gupta-friendly-member-eskom-board/

For more news your way, follow The Citizen on Facebook and Twitter.