Ex-Eskom acting CEO defends suspension of execs ‘to clear way for Gupta aides’

Former Eskom board member and acting chief executive officer (CEO), Zithembe Khoza, appeared before the Commission of Inquiry into State Capture on Wednesday, 9 December, detailing the suspension of four executives from the state-owned enterprise (SOE) in 2015.

Giving his testimony, Khoza revealed that the possibility of suspending any executives may have been conceived during a meeting on 11 March 2015.

Khoza said former minister of public enterprises Lynne Brown had raised concerns regarding the amount of time the executives spent at the war room, along with other matters of concern within Eskom.

“During the meeting the minister [Brown] immediately began addressing the in-committee board by stating that she wants the board to get to grips with the operational issues facing Eskom. She had asked the board to prioritise load shedding, infrastructure, and finance concerns, however, she noted that, as the ministry, she could not dictate each and every aspect to the board.

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“She went on to expand on the issues facing Eskom and stated that perhaps the current executives were not at grips with these issues and that they may need to step aside.”

The matter comes in light of former Eskom board chairperson Zola Tsotsi’s testimony in September, who told the commission that there was an effort to remove certain people from Eskom in order to replace them with the Gupta family’s associates.

Former Eskom CEO Tshediso Matona, group capital executive Dan Marokane, finance director Tsholofelo Molefe and group executive of technology Matshela Koko were subsequently suspended.

Meanwhile, during the proceedings, Khoza defended the decision to suspend the executives at the time.

“I think at the time when we [Eskom board] suspended the executives based on the investigations that were going to take place without charging them… I agree that we can defend that because it was decision that we want to deep dive and understand what was happening in the organisation.”

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Khoza said the Eskom board had not carefully considered the outcomes before the payment of severance packages to the executives.

“Maybe we did not apply our mind over what was the position of these executives when they voiced their dissatisfaction and wanted separation packages. The feeling was that they were going to come back and then they will request to settle so maybe we just go with them.”

He further agreed with commission chair, Deputy Chief Justice Raymond Zondo, that the suspension of executives was not initiated by the then-Eskom board.

“It was ultimately concluded that an inquiry would be implemented and that Mr Marokana, Mr Matona, and Mr Koko would be suspended. Various members of the board had raised the point that should the financial director [Molefe] be suspended.”