Mentor: Scrap Eskom board

Cape Town - Parliament's public enterprises committee chairperson Vytjie Mentor has called for the boards of South Africa's nine state-owned enterprises, including Eskom, to be scrapped. Their duties would be replaced by government departments.

"It may be that boards can be done away with and the mandate given to departments," Mentor said shortly after a committee meeting.

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

"One things is certain," said Mentor. "A state-owned enterprise like Eskom cannot be run like a private company," she said.

Mentor's comments follow an acrimonious few days at Eskom in which its chairperson Bobby Godsell resigned after CEO Jacob Maroga reversed his decision to quit. Transnet is yet to appoint a full-time CEO, while the SABC reconstituted its board.

Speaking for the first time since Godsell resigned on Monday, Mentor dismissed the possibility that his departure was prompted by government's failure to support the Eskom board's decision to dispense with Maroga's services.

Mentor also threw cold water over the notion of government interference. "I do not understand this political interference thing," said Mentor. "How does that work in terms of the fact that the state gives state-owned enterprises cash injections, loans and guarantees?"

"Our [government's] right should not be contained at certain points," she said, speaking to Fin24.com shortly after throwing the department of public enterprises out of her committee.

She did so because the department was inadequately prepared to present on the performance and remuneration of executives and board members of parastatals.

Asked to comment specifically about Godsell's resignation and the implications if held for Eskom and the country, Mentor said: "I congratulate Minister (of Public Enterprises) Barbara Hogan on the speedy response in appointing an acting chairperson."

She also refused to comment on allegations from the ANC Youth League and Black Management Forum that Godsell's desire to get rid of Eskom CEO Jacob Maroga was motivated by racism.

"If people use race to explain these things they may have a basis for doing so. I do not respond to allegations of racism," she said.

- Fin24.com