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Molefe brought Eskom into disrepute - Iraj Abedian

Cape Town - Brian Molefe has emphasised his stepping down as Eskom CEO is not a sign of wrongdoing. However economist Iraj Abedian indicated that his resignation is in the best interest of the power utility.  

"I wish to reiterate that this act is not an admission of wrongdoing on my part. It is rather what I feel to be the correct thing to do in the interests of the company and good corporate governance," said Molefe.

"I go now, because it is in the interests of Eskom and the public it serves, that I do so."

READ: Full statement of Molefe's resignation

Molefe's resignation was inevitable, Abedian told Fin24, adding: "All in all it is good for Eskom."

He said Molefe brought the whole organisation into disrepute.

"He could no longer have the respect and trust of his staff. Bone fide clients of Eskom could not trust the entity either."

READ: Eskom board should be dissolved - economist

Abedian called for the break-up of the Eskom board, after the utility was named as one of five state-owned enterprises implicated in allegations of impropriety in former public protector Thuli Madonsela's report entitled State of Capture.

The report stated that Eskom's board appeared to be in violation of the Public Finance Management Act relating to the Gupta-owned Tegeta Resources & Energy for a coal tender. Madonsela noted that it also appeared the board was improperly appointed and that they acted solely to benefit Tegeta in awarding contracts to them.

Following the report, Abedian suggested two interventions.

He said the current board should be dissolved and each member should be subjected to the provisions of the Company Act, where they carry personal liability in this regard.

Abedian said a new board should be appropriately constituted and should be put in place.

READ: I will resign, says Brian Molefe

Molefe indicated in a press briefing last week that he was willing to take responsibility for Eskom's dealings with Tegeta.

"I do not think my minister [Lynne Brown] should resign over that [Tegeta's coal contract] decision," said Molefe. "I also don't think the president should resign.

"The president did not even know anything about it as far as I'm concerned and calls for his resignation, I think, are out of line," he said. "I will resign before he does."

At the time Abedian said resigning would be an honourable act, but he said Brown and chairperson Baldwin Ngubane should take the rap as well.

Corruption Watch appeals to Eskom board

Meanwhile, Corruption Watch said any alleged irregular or criminal conduct on the part of Molefe would not have been possible without the consent of the board of Eskom, specifically Ngubane.

"Its prominence as a major state owned enterprise requires that the public has confidence in its operations, functioning and leadership," it said in a statement on Friday.

"The organisation urges the members of the board to consider whether their continued leadership of the parastatal is in fact in the best interests of Eskom."

Corruption Watch said the allegations against Molefe, both in the media and the State of Capture report, must continue to be the subject of inquiry by the pending judicial commission of inquiry into state capture. It added that it should also be investigated by the relevant law enforcement authorities.

This is a victory - Greenpeace Africa

Greenpeace Africa said Molefe's resignation is a victory for accountability and transparency.

"[It] is a clear message that our democracy is alive and well and that South Africans have had enough of dodgy deals behind closed doors," said campaign manager Melita Steele.

She said since Molefe was personally spearheading Eskom’s "anti-renewable energy campaign", him leaving is good news for all South Africans.

"It is now time to question Molefe’s single minded determination for nuclear to go ahead in this country, and to make sure that Eskom’s new CEO is someone who is able to lead the utility into a clean, renewable energy future that puts the interests of South Africans first," said Steele.

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