Eskom boss Molefe’s crocodile tears a master act: Madonsela

Thuli Madonsela, the former public protector, has accused Eskom CEO Brian Molefe of putting on a show to cast himself as a "victim" rather than answer hard questions about his cosy relationship with the Guptas and dishing out irregular deals to their companies.

Molefe slammed Madonsela on Thursday for painting him as corrupt without providing evidence or giving him the opportunity to present his version of events.

He became emotional and appeared to break down in tears while trying to explain his movements in Saxonwold, the Johannesburg suburb where the Gupta family have a home.

But Madonsela said she was not fooled by Molefe's crocodile tears.

"He was a master of diversion today," she said of his emotional attack on her.

"By demonising the other he made himself look good by default. That was calculated. Even that dramatic exit when he looked emotional.It was a lovely movie moment. He put on a great show."

Molefe was speaking at a presentation of Eskom's financial results for the six months ending September 30.

Madonsela said he had ample opportunity, including yesterday, to come clean on why Eskom had given a R660-million prepayment to a Gupta-owned start-up company and explain his visits to Saxonwold.

"We have evidence from a driver who recorded the numbers of cars coming in. He has a whole book of high-profile visitors", including Molefe, she said.

"I asked: 'What is your relationship with the Guptas?' He spoke about bars.He didn't mention one word about his relationship and visits to the Guptas and why he would visit them - or why he would phone Mr Gupta 44 times."

Madonsela had sought evidence in vain from Eskom that the Gupta prepayment was standard policy.

"He painted me as bad, to be presented as a victim."

Madonsela's report into state capture, released on Wednesday, highlighted Molefe's close relationship with the high-profile Gupta family, whose company benefited from an irregular contract with Eskom. The report detailed how Eskom appeared to orchestrate a sweetheart deal and an irregular prepayment of R660-million for Tegeta, a mining company owned by the Guptas and President Jacob Zuma's son, Duduzane.

The deal allowed Tegeta to score a profit of R2-billion from Glencore's sale of its Optimum Mine.

Eskom apparently forced the sale of Optimum Coal Holdings to Tegeta by stating that Optimum Coal Mine could not be sold alone, then allowed Tegeta to sell a portion of OCH in the form of Optimum Coal Terminal for a profit of R2 billion.

Madonsela's report said while the deal was being negotiated phone records put Molefe "in the Saxonwold area" 19 times and that he had called Ajay Gupta 44 times.

Atul Gupta admitted to Madonsela that Molefe was a "very good friend" who often visited his home.

Molefe made light of these findings, joking that he might have "gone to a shebeen" in Saxonwold.

Molefe said he would present evidence to a judicial inquiry and ask for a judicial review of her report.

"The results will come out in 18 or 24 months. In the meantime my children will be taunted at school."

Molefe believed his trouble began because he refused to succumb to "blackmail" from mining giant Glencore. Its CEO Ivan Glasenberg had approached him at the height of the load-shedding crisis last year demanding a coal price increase for Glencore's Optimum Mine from R150/t to R530/t, he alleged.

"He said if we stop supplying coal we will have more load-shedding. I said to Mr Glasenberg: 'If you are putting a gun to my head you must shoot.' We did not agree to do it. That decision led to a domino effect of monumental proportions."

Glencore rejected Molefe's allegations yesterday, saying the company had "engaged in good faith with Eskom over a period of more than two years".

"At no stage did Optimum Coal Mine raise the topic of load-shedding in its discussions with Eskom. The last offer made by OCM, while it was under Glencore's control, was R300/t until 2018, not R530/t.

"Eskom rejected this offer and terminated negotiations with OCM," said Glencore spokesman Charles Watenphul.

Constitutional law expert Pierre de Vos said Madonsela's report was likely to face more challenges resulting in a delay in the finalisaiton of the commission of inquiry she called for in her report.

"The report is almost certainly going to be taken to court."

Additional reporting by Siphe Macanda