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Eskom rubbishes Gupta grab claims

Cape Town - The morale of employees and directors has taken a dip following reports that Eskom has been ‘captured’ by the wealthy Gupta family, according to the power utility.

In a lengthy statement on Tuesday, Eskom responded to media reports suggesting that it and other state-owned companies have been ‘captured’ by politically connected families and individuals.

"In recent months the media and some industry analysts have sought to create a public perception that Eskom directors are being used as pawns to facilitate lucrative tenders to these politically connected families."

Read: Oakbay’s Tegeta must still pay R2bn penalty for poor coal - Eskom

It looks like everyone who works for state-owned companies is presumed guilty until proven otherwise by the media, said Eskom.

"By its own admission, the Mail & Guardian recently wrote that the directors named in their article titled 'The Gupta-owned state enterprises' might not have done anything wrong, but by virtue of them being appointed into such positions 'adds significant weight to concerns about so-called state capture'."

Eskom claimed this sounds like a desperate effort to vilify all recently appointed board members and executives of state-owned enterprises even though there is no evidence of wrongdoing on their part.

It said in an effort to justify and legitimise its allegations, the Mail & Guardian wrote that: "The links are indisputable in some cases, and circumstantial or minor in others, and there is no evidence of the named directors and advisers doing anything untoward.

"But the power this network could wield adds significant weight to concerns about so-called state capture. The network’s access to the state’s most important economic engines, though a raft of board positions, at the very least calls into question the integrity of the appointment process, for which Public Enterprises Minister Lynne Brown bears major responsibility."

Eskom said this article and the intention behind it were "incorrect, mischievous and misleading".

Read: Eskom cuts diesel bill by R760m in five months

It pointed out that the professional integrity of board members - as well as their business dealings outside Eskom - has been adversely affected.

"In the absence of concrete evidence of wrongdoing, this, surely, is unfair. They, too, need to be protected by the constitution and be presumed innocent until proven guilty.

"The negative publicity is affecting the morale of Eskom employees and its directors. In this month alone, Eskom has lost two board members who had made valuable contributions to the board and its activities." 

However, Eskom went on to say it is confident that it has a robust system and processes in place to ensure that actual, potential and perceived conflicts of interest of all its directors and employees are managed effectively.

"The interests of all directors on the Eskom board are managed in terms of the legal and governance requirements relating to disclosure of personal financial interests," the power utility pointed out.

It further noted that if recent comments attributed to former Eskom chairperson Zola Tsotsi (that some of the senior managers within the company are corrupt) are correct, he must report the matter to the law enforcement agencies as required by Section 34 of the Prevention and Combating of Corrupt Activities Act.

Tsotsi alleged he was kicked out of Eskom after he refused to give in to demands by the Gupta family.

Read: Kumalo quits Eskom board - report

Eskom board chairperson Dr Ngubane also thanked Romeo Kumalo and Mariam Cassim, who resigned recently.  

“Mr Kumalo and Ms Cassim have served diligently and honestly on the main board and as members of sub-committees. We wish them both all the best in their endeavours,” he said.

Kumalo resigned from the Eskom board 14 months after joining it. This followed a report in the Mail & Guardian on March 24 that linked him to Gupta partner Salim Essa.

“Essa was also a co-director with Eskom board member Romeo Kumalo in the company Ujiri Mining, until Essa’s resignation in August 2015,” it reported.

Kumalo was quick to respond, saying the company was dormant, never traded in any lucrative mining deals and “has had no direct links whatsoever with the Gupta family”.

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