Maroga exits Eskom

Johannesburg - Electricity supplier Eskom's CEO Jacob Maroga has resigned with immediate effect, according to a staff announcement made by the company's chair Bobby Godsell on Thursday afternoon.

Two different Eskom employees confirmed Godsell made the announcement that Maroga, who was absent from the announcement, resigned on Friday.

"They said they are still resolving the legal matters of his employment contract," said a source. Another employee told Fin24.com shortly after the staff announcement that Maroga had resigned, and that the board had accepted his resignation. "They are still working out the formalities."

Godsell made the announcement together with non-executive director Mpho Makwana just after Thursday noon.

"It is a difficult time for Eskom. All that we can do is put our heads together... MrMaroga needs time to heal, we have to allow that process to go on," Makwana said, reported Sapa.

A press briefing that was scheduled to take place after the staff announcement was cancelled shortly before it was about to take place.

"I don't know why it was cancelled," said an employee in Eskom's communications department.

Cabinet concerned

Earlier on Thursday in parliament, cabinet released a statement saying it was concerned about the negative effect that Eskom's proposed tariff increases will have on the economy if granted, reports Troye Lund.

Cabinet has asked Minister of Public Enterprises Barbara Hogan and Finance Minister Pravin Gordhan to come up with "other options". Eskom has asked the National Energy Regulator for a 45% increase every year for three years starting in 2010.

- Fin24.com