Maroga definitely out - Eskom board

Sikonathi Mantshantsha | Thu, 12 Nov 2009 12:56
[miningmx.com] -- South African power utility Eskom said on Thursday Jacob Maroga was no longer its CEO, putting an end to a long leadership battle at the troubled state-owned parastatal.

It also said it had no power to reinstall former chairperson Bobby Godsell because the shareholder - government - appointed that position. Eskom’s acting executive chairman, Mpho Makwana, said Godsell was welcome to approach the shareholder if he chose.

Makwana told a press conference at Eskom’s headquarters in Johannesburg that he had been entrusted to run the company until a new chair and CEO had been appointed. The search for Maroga’s replacement had already begun with an appointment likely in 90 days.

The last two weeks have been among the most fraught in Eskom's topsy-turvey history with Maroga denying he had quit the firm even though Godsell had confirmed his resignation in an announcement to employees.

Maroga's tenure has been marked by power shortages, a record loss of R9.7bn in the year to March and electricity price rises criticised for stoking inflation as South Africa battles recession.

Godsell was known to be critical of Eskom's board and its capacity to speedily resolve the power crisis - words that drew derision from Maroga who termed it 'white supervision'.

After first hearing of Maroga's plans to resign from Eskom, political factions across the South African political spectrum were drawn to comment.

Among the most vocal was the ANC Youth League who labelled Godsell a racist and said the upper echelons of Eskom were "a slaughterhouse" for black leaders, a comment that drew rebuke from the country's largest labour federation, Cosatu, which defended the former head of AngloGold Ashanti.

Against this background, Makwana expressed his regret at events which also included allegations that government had attempted to directly interfere in the company’s board protocols.

Said Makwana: “My role is to help employees with the healing process after this difficult period and to instil in them a sense of belonging, pride and team spirit”.

Eskom wants to now put this conflict behind it and get on with business, he said.

"Of fundamental importance for South Africa is that along with providing a reliable electricity supply, Eskom remains financially sustainable as we proceed with the tariff application process and, going forward, and that we are able to secure sufficient funding to proceed with our build programme," he said.

Intriguingly, Makwana raised the prospect of potential legal action from Maroga. “If Maroga feels his rights have been infringed, he can take legal action,” he said.

Makwana confirmed that Maroga had given verbal notice of his decision to resign on October 28. However, Maroga appeared to change his mind creating confusion over who would run Eskom in the future.

The matter was not finally put to bed until last night, said Makwana, who confirmed discussions with Maroga went on into the evening.

“It took two weeks to resolve this amicably,” said Makwana explaining why the matter dragged on for more than a week. “The board was trying to negotiate an dignified exit for him,” he said.

Makwana said he expected to hold his position for only six months.