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Gigaba regrets Eskom announcement

Jun 10 2011 14:44 Fin24 & Sapa

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Johannesburg - As criticism grew over the government's overhaul of the Eskom and Denel boards, Public Enterprises Minister Malusi Gigaba on Friday said he regretted that the changes were made public before he could officially inform the people involved.

A statement by Gigaba's office said he "expresses regret over the fact he could not officially inform current board members impacted by the changes beforehand owing to the premature publication of the Cabinet decision."

He said as a result he could not discuss "the envisaged changes with other stakeholders of Eskom and Denel".

On Thursday cabinet spokesperson Jimmy Manyi said it had ratified the appointment of Zola Tsotsi as new chairperson of the Eskom board, and Zoli Kunene as chair of the Denel board.

Tsotsi replaced Mpho Makwana, who had taken over from Bobby Godsell after Godsell left the utility in the midst of a public dispute with former CEO Jacob Maroga.

The entire Eskom board, barring two members, would be replaced. The move is part of a leadership overhaul at major state utilities.

Manyi said the government was also looking at restructuring Transnet's board. Reports have suggested that chairperson Mafika Mkwanazi could be removed.

On Friday trade union federation Cosatu demanded that the Eskom appointments be suspended so that unions could be consulted.

"It is absolutely unacceptable that the minister of public enterprises should unilaterally make appointments to such an important public utility, without consulting the main stakeholders, including the Num (National Union of Mineworkers), other trade unions within Eskom and Cosatu itself. We call on the minister to suspend the appointments to allow for a proper process of consultation with all stakeholders," Cosatu said.

On Thursday the Num objected to Eskom board changes being made without consulting it as one of the unions representing staff at the utility.

On Thursday night the Chamber of Mines said it was also concerned by the changes.

"We are deeply concerned... (and) do not understand the logic behind their removal from office," its CEO Bheki Sibiya said.

 
 
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