Siseko Njobeni
12 November 2009
Johannesburg — ESKOM CEO Jacob Maroga is still out in the cold after the utility insisted yesterday that he was not the CEO, for the first time clarifying his status after Maroga returned to work claiming government support on Monday.
Spokesman Andrew Etzinger said yesterday the Eskom board "was proceeding on the basis that Maroga is no longer" CEO.
He said the board's position was that Maroga had offered to resign on October 28, and it accepted his resignation.
The board's hard stance is likely to spark a long tussle with Maroga who, insisting he had not resigned, returned to his office on Monday, apparently victorious after Eskom board chairman Bobby Godsell resigned.
But yesterday's comment from Etzinger appeared to confirm the board would persist in axing Maroga. It did not make a statement on the crisis despite promising to do so since Tuesday.
The uncertainty and confusion over Maroga's fate leaves a leadership vacuum at the utility as no acting CEO has been named.
There has been speculation Maroga's departure could see the return of Godsell, who resigned in protest, blaming the government for lack of support on the impasse caused by Maroga.
Godsell declined yesterday to comment on Eskom matters.
There is the danger that the impasse, if prolonged, could stall important decisions the utility's senior leadership has to take.
Analysts have warned that the controversy could affect Eskom's efforts to raise money for its R384bn capital-expansion programme.
Eskom is also in the midst of an application for a 45% tariff increase, which has been roundly criticised because of its effect on the economy and the poor.
AngloGold Ashanti CE Mark Cutifani said yesterday the government was expected to reject the tariff-hike proposals, due partly to its effect on gold mining.
Speaking at a gold conference in London, Cutifani said that up to 1-million people would suffer if Eskom's proposed hike of 45% a year for three years was implemented.
"As a consequence, I do not believe the Eskom 45-45-45 proposal will fly. Certainly, the indications we've had from within government are that they understand the problem."
Cutifani said tariffs were likely to double in the next three years, instead of tripling as proposed by Eskom. A doubling of tariffs would lead to a 10% hike in cash costs for AngloGold, he said.
Business Unity SA said yesterday it was concerned about developments at Eskom.
However, energy group CIC Energy moved yesterday to play down the effect Eskom's leadership controversy would have on its ambitious Mmamabula energy complex in Botswana.
Eskom is going to buy the bulk of electricity to be produced from the project, which includes a power station and a coal mine.
The groups have not yet sealed a power-purchase agreement.
CIC said it did not believe the uncertainty over Eskom leadership would affect the project.
CIC Energy president Greg Kinross said that the government, and not Eskom, was now the decision maker on the project.
With Reuters, Bloomberg
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