Business Day (Johannesburg)

South Africa: NUM Speaks Up for Godsell As Eskom Race Row Spirals

Johannesburg — ESKOM CEO Jacob Maroga was absent from his Megawatt Park offices yesterday, a day after he returned triumphantly and board chairman Bobby Godsell quit.

Maroga's absence fuels confusion over whether or not he will stay on as CEO.

Maroga told colleagues on Monday he had support from a "shareholder at the highest level", but it is understood the government asked him to leave until Public Enterprises Minister Barbara Hogan tells him to return.

Eskom spokesman Andrew Etzinger confirmed yesterday that Maroga was not at work.

Speculation is rife that the Eskom board, with Mpho Makwana as acting chairman, still insists that Maroga resigned at a board meeting on October 28, and that it is sticking to that.

Godsell confirmed Maroga's resignation on Monday.

Explaining his resignation as chairman, Godsell blamed lack of government support for the board's acceptance of Maroga's resignation.

The precariousness of Maroga's position emerged as the African National Congress (ANC) and trade unions defended Godsell against the ANC Youth League's accusations of racism.

The National Union of Mineworkers (NUM) yesterday strongly disputed claims of racism levelled at Godsell. NUM general secretary Frans Baleni said: "We do not support the notion of racism being manufactured to suit certain agendas.

"The issue of playing racism even where there is none makes it difficult for all of us to confront real racism where it exists."

Baleni said the controversy over Maroga's fate had paralysed Eskom and could undermine good governance at the utility. "Eskom is bigger than individuals. If the issue is about the two individuals, they must step aside. If both individuals disappear, so be it."

No individual should be protected "at all costs", he said.

Baleni said the government's handling of the Eskom saga was "very clumsy", and the NUM wanted to meet Hogan on the matter.

The NUM has about 11000 members employed by Eskom.

ANC secretary-general Gwede Mantashe said that the matter should not be simplified into a racism issue.

Cosatu general secretary Zwelinzima Vavi told the SABC on Monday that Godsell was "definitely not a racist".

Meanwhile, the chairwoman of Parliament's public enterprises committee, Vytjie Mentor, called for boards of the nine state-owned enterprises, including Eskom, to be scrapped and replaced by government departments.

"It may be that boards can be done away with and the mandate given to departments," Mentor told Fin24 yesterday.

The mandates of the parastatals had to realign to suit the needs of a "developmental state". Failure to address discrepancies between the boards of state- owned enterprises and the government could lead to "personality clashes", Mentor said.

Baleni said the racism allegations would "cloud" substantive issues such as Eskom's application for a 45% electricity tariff increase for each of the next three years. He said the increases could prompt mining companies to lay off workers.

Analysts have warned that the controversy could affect Eskom's efforts to raise money for its R384bn capital-expansion programme. The power utility will still face a funding shortfall of R30bn even if the National Energy Regulator of SA grants it the 45% tariff increase Eskom seeks.

Ratings agency Moody's Investors Service said yesterday it did not expect changes at Eskom's management to affect the utility's rating "as this is only one component addressed by Moody's rating". The agency said that it was concerned about the operational and strategic challenges that Eskom faced, which it said could affect electricity supply and costs negatively.

Moody's vice-president and senior credit officer Helen Francis said Moody's negative rating outlook for Eskom reflected the weak position of Eskom's baseline credit assessment in its rating category.

That was combined with risks associated with execution of its capital expansion programme "and the political and regulatory pressures that surround it".


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