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CEO crisis harms Eskom

Nov 03 2009 12:43 Jan de Lange

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Johannesburg - Uncertainty about leadership at power utility Eskom is starting to have a serious effect on business confidence, as more evidence came to the fore on Monday concerning faulty management in the run-up to the power crisis which paralysed the country in January 2008.

"It's incredible that a leadership crisis should have been dragging on for days at Eskom without the company or the government saying a word about it.

"And this is at a time when the country is in the midst of massive electricity problems," an executive at one of Eskom's largest clients, who wished to remain anonymous, said on Monday.

Everything indicates there is a serious leadership crisis at Eskom which Public Enterprises Minister Barbara Hogan is trying to resolve.

Reports that CEO Jacob Maroga was asked by the board to resign last week have not been confirmed or denied by Eskom's official spokespeople for several days. Hogan apparently attended the most heated portions of the board meeting at Megawatt Park in Sandton.

Maroga and his chairperson, Bobby Godsell, have not taken any phone calls since Thursday.

Maroga's personal assistant, Helen Bezuidenhout, told Sake24 on Friday that Godsell had asked her to draw up a distribution list for a media statement that would be issued jointly by Eskom and the department of public enterprises on Friday.

However, no such statement was ever made, and on Monday Eskom spokespeople refused to comment.

On Monday, the Democratic Alliance released a confidential internal report, showing that shortly before the electricity crisis in January 2008 half the strategic posts in Eskom's coal division were vacant. The report was compiled by Eskom's corporate technical auditing division in November 2007.

The staff shortages were at senior management level and for short- and long-term coal buyers.

"Negotiation teams for short- and long-term coal acquisition must be strengthened, because of the volume of negotiations," the report stated.

- Sake24

For more business news in Afrikaans, visit Sake24.com/

 
 
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