The Eskom board has bolstered the prospect of the probe into the utility’s affairs being independent.
It emerged on Thursday that the board had rejected its former chairman Zola Tsotsi’s unilaterally appointed management consultant‚ Nick Linnell‚ to head the probe‚ although Eskom will continue with the inquiry.
With a new person heading the investigation‚ it is expected that the inquiry might get to the heart of Eskom’s problems.
Eskom spokesman Khulu Phasiwe‚ speaking on behalf of the board‚ said it had selected a replacement for Linnell last week after following proper tender procedures. An announcement is expected in the next few days.
An independently run investigation would fundamentally alter the purpose and outcome of the probe. It would also enhance the credibility of its findings.
President Jacob Zuma is understood to have urged that an inquiry be held.
According to accounts of an Eskom board meeting at which it was decided to suspend chief executive Tshediso Matona and three other executives‚ Zuma also recommended to Tsotsi that Linnell be appointed. Tsotsi did this without following proper processes and presented it to the board as a done deal.
Linnell was the coordinator of an inquiry into South African Airways (SAA) chief executive Monwabisi Kalawe and worked for SAA chairwoman Dudu Myeni when she was head of the Mhlathuze Water Board.
Myeni‚ executive chairwoman of the Jacob Zuma Foundation‚ is a close friend of Zuma.
The investigation would originally have been under Tsotsi’s control. His personal involvement in the probe and the manner of Linnell’s appointment to head it was criticised as contravening precepts of sound corporate governance. This was especially the case as Tsotsi was at the helm of the electricity utility for four years and oversaw its slide into ever deeper trouble. The board had rejected Linnell not on personal grounds as “he did not do anything wrong” but because he was not correctly appointed.
The board had decided that its terms of reference would include a probe into the reasons for the repeated breakdown in generators which have resulted in load-shedding‚ the financial position of the company and the amount of money spent on procuring diesel for the open-cycle gas turbines that have been used more intensively than anticipated to address the electricity supply shortfall.
“As the Minister of Public Enterprises Lynne Brown said‚ there needs to be a ‘deep dive’ into these situations to find out what is going on‚” Phasiwe said.
Brown has complained about the withholding of crucial information about Eskom’s operations and finances from the “war room” established under the leadership of Deputy President Cyril Ramaphosa to manage the power supply shortage.
Linnell’s appointment was one of a number of the board’s complaints against Tsotsi, who agreed to step down last Monday after a motion of no confidence in him. Ben Ngubane was appointed as acting chairman.
Other complaints against Tsotsi were that he had interfered in operational matters and overstepped his non-executive role. The board has also decided that the suspension of the four top executives should be maintained.
Phasiwe said the Easter weekend had been free of load-shedding due to low demand for electricity but demand was expected to increase as business activities resumed. That would increase the risk of load-shedding.
The holiday allowed Eskom to replenish resources and carry out maintenance. — BDLive
Board moves on Eskom probe
It emerged on Thursday that the board had rejected its former chairman Zola Tsotsi’s unilaterally appointed management consultant‚ Nick Linnell‚ to head the probe‚ although Eskom will continue with the inquiry.
With a new person heading the investigation‚ it is expected that the inquiry might get to the heart of Eskom’s problems.
Eskom spokesman Khulu Phasiwe‚ speaking on behalf of the board‚ said it had selected a replacement for Linnell last week after following proper tender procedures. An announcement is expected in the next few days.
An independently run investigation would fundamentally alter the purpose and outcome of the probe. It would also enhance the credibility of its findings.
President Jacob Zuma is understood to have urged that an inquiry be held.
According to accounts of an Eskom board meeting at which it was decided to suspend chief executive Tshediso Matona and three other executives‚ Zuma also recommended to Tsotsi that Linnell be appointed. Tsotsi did this without following proper processes and presented it to the board as a done deal.
Linnell was the coordinator of an inquiry into South African Airways (SAA) chief executive Monwabisi Kalawe and worked for SAA chairwoman Dudu Myeni when she was head of the Mhlathuze Water Board.
Myeni‚ executive chairwoman of the Jacob Zuma Foundation‚ is a close friend of Zuma.
The investigation would originally have been under Tsotsi’s control. His personal involvement in the probe and the manner of Linnell’s appointment to head it was criticised as contravening precepts of sound corporate governance. This was especially the case as Tsotsi was at the helm of the electricity utility for four years and oversaw its slide into ever deeper trouble. The board had rejected Linnell not on personal grounds as “he did not do anything wrong” but because he was not correctly appointed.
The board had decided that its terms of reference would include a probe into the reasons for the repeated breakdown in generators which have resulted in load-shedding‚ the financial position of the company and the amount of money spent on procuring diesel for the open-cycle gas turbines that have been used more intensively than anticipated to address the electricity supply shortfall.
“As the Minister of Public Enterprises Lynne Brown said‚ there needs to be a ‘deep dive’ into these situations to find out what is going on‚” Phasiwe said.
Brown has complained about the withholding of crucial information about Eskom’s operations and finances from the “war room” established under the leadership of Deputy President Cyril Ramaphosa to manage the power supply shortage.
Linnell’s appointment was one of a number of the board’s complaints against Tsotsi, who agreed to step down last Monday after a motion of no confidence in him. Ben Ngubane was appointed as acting chairman.
Other complaints against Tsotsi were that he had interfered in operational matters and overstepped his non-executive role. The board has also decided that the suspension of the four top executives should be maintained.
Phasiwe said the Easter weekend had been free of load-shedding due to low demand for electricity but demand was expected to increase as business activities resumed. That would increase the risk of load-shedding.
The holiday allowed Eskom to replenish resources and carry out maintenance. — BDLive
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