The new Eskom board has been announced. Current Telkom chair Jabu Mabuza has been named the new chairperson of the power utility.
JOHANNESBURG - Eskom chairperson, Jabu Mabuza is threatening to dismiss employees who are doing business with the power utility.
He has given them 10 days to end the contracts or leave the company.
Parliament’s Portfolio Committee on Public Enterprises has been visiting the cash-strapped state-owned enterprise.
Mabuza said he agreed with the observation that lifestyle audits need to be conducted because there were lots of executives who were moonlighting.
“There a lot of executives working for Eskom, but doing business with Eskom,” he lamented. “From the 31st of January, no one will be working for Eskom and doing business with Eskom. Those who are have 10 days to get out...”
The chair said anyone found to be directly or indirectly doing business with Eskom will be fired.
“That will be grounds for dismissal. You can’t sit this side [at Eskom], award tenders and be on the other side, receiving the tenders,” Mabuza added.
Eskom further revealed it had placed at least 160 contracts worth more that R1-billion under investigation.
“We have stated that all contracts are being reviewed currently,” Mabuza said. “We’ve noted a need to visit evergreen contracts and gain an understanding on that.”
Praise for new Eskom board
The Portfolio Committee on Public Enterprises, in a statement on Thursday, said it was encouraged by developments to deal with governance issues, which have long plagued the utility.
Eskom has been at the centre of state capture claims linked to the controversial Gupta family.
“The board has assured the committee that they are well on track to deal with this challenge [of governance]. The resignations and suspensions of senior managers that oversaw the decline at the company, attests to the urgency that the board and the Acting GCEO have placed, in dealing with these challenges,” the statement read.
The committee was however concerned about liquidity issues with ratings agencies Moody’s and Fitch both downgrading the company.
“We are hopeful that potential investors will recognise the work already done by the new board and the new senior management as reassurance for a brighter future for the company,” the committee said.
“The Committee is convinced that the new leadership at the institution is steering the company in the right direction that will ensure the future viability of the company. This is important for the growth and sustainability of South Africa’s economy,” the statement added.