Eskom denies Zola Tsotsi to head probe
Fin24

Eskom denies Zola Tsotsi to head probe

2015-03-16 12:25

Cape Town - The independence of the investigation into the affairs of Eskom need not be questioned as it is not true that Eskom chairperson Zola Tsotsi will be heading the investigation, Eskom told Fin24 on Monday.

The inquiry relates to the suspension of four top executives, including the CEO Tshediso Matona, last week.

READ: Eskom suspends CEO ahead of inquiry into utility

"As the chair said last week at the media briefing, a lawyer has been appointed to head the inquiry," said Eskom.

This was after a daily newspaper reported that Tsotsi is "taking control of the probe" and "has put himself in charge of the investigation". The independence of the inquiry was, therefore, questioned.

At the media briefing last week Tsotsi indicated he would head a board subcommittee to oversee progress regarding the investigation. Two other board members would serve on the subcommittee with him.

The Eskom crisis is not only bad for investor confidence, but also bad for "citizen confidence", economist Dr Iraj Abedian told News24Live.

READ: Eskom incompetence becomes SA incompetence - economist

The inquiry will investigate the poor performance of generation plants, delays in bringing the new generation plant on-stream, high costs of primary energy and cash flow challenges.

The ratings agency Moody's found the investigation and the suspensions could hurt investor sentiment, especially in the light of Eskom's R250bn debt.

To Abedian the very act of suspending the executives and launching an inquiry is actually an admission of a crisis.

"This actually shows the incompetence of the board itself," said Abedian.

According to Tsotsi the investigation is "nothing sinister". It should rather be seen as a fact-finding mission, expecting to take about three months.

Eskom said in a statement it is seeking an independent view on the status of, among other things, the poor performance of generation plants, delays in bringing the new generation plant on-stream, the high costs of primary energy and cash flow challenges.

By contrast, emerging markets economist Peter Attard Montalto of Nomura claimed an inquiry into Eskom will have the opposite effect of sorting out the utility’s issues and that it will not find anything that the government does not already know.

ALSO READ: Eskom does not need an inquiry - expert

Comments
  • George Slade - 2015-03-16 12:43

    A Lawyer to head the inquiry is Ridiculous. Get A Retired Chartered Accountant who understands Business ---This is not a Legal Problem !

      Les Thorpe - 2015-03-16 14:29

      I would submit that Eskom need be investigated from top to bottom under the headings of 1) Business competence (headed up by a person having vast business experience in running large electricity supply organisation); and 2) Electrical engineering competence (headed up by a person who has held a senior position in the electricity generation/transmission/supply industry). The first posting requires a CA, MBA qualification: the second posting requires a B.Sc.(Eng.), Pr.Eng. minimum. But I suppose that one of Showerhead's legal friends will get the commission. And how can Eskom select an investigatory body when it does not know the first thing about the electricity supply industry (anymore)???

  • Whiz Bang - 2015-03-16 12:46

    Tsotsi !!! Seems to have the right name for it.

      Ike Jakson - 2015-03-16 13:13

      Ayup, WHIZ

  • Secrecy Bill - 2015-03-16 12:50

    A massive disincentive to investors ! .... So stupid that they are incapable of understanding how stupid and damaging this farce of an "investigation" is !

      Excellence - 2015-03-16 13:21

      Wow what insight, did you think that up all by yourself

      Jaapie Bopape - 2015-03-16 14:32

      RSL go see what Standard and Poor have to say about this, in truth others have thought this up.

  • Rodney Churchyard - 2015-03-16 13:08

    Come on Eskom I dare you to appoint Thuli Madonsela to head your investigation.This will truly show us as the public that you are doing something positive.

      Ani MalFarm - 2015-03-16 13:21

      Come on now, any investigations that might lead to any unfavourable or unpleasant findings - or any sensitive recommendations for that matter are undesirable!

  • Ike Jakson - 2015-03-16 13:12

    Well guys and gals, Thabo did promise us the African Millennium. Enjoy the ride. I am staying put and will wave you on when you pass my little place of self-imposed voluntary exile in the poorhouse of my choice. Bye bye Africa.

  • Excellence - 2015-03-16 15:06

    Point proven, whites are so ingrained with hatred the can't even see a ruse for what it is, lighten up relax your butt cheeks and enjoy some fun

  • Richard Westviews - 2015-03-16 15:53

    there is jus something wrong at Eishkom . something has to be done

  • Mark Crozier - 2015-03-16 17:18

    'A lawyer' will head the enquiry. Wow, that really fills us with confidence!

      Jan Grimbeek - 2015-03-17 10:42

      It will be .... wait for it ..... . . Michael Hulley, president jacob zuma's lawyer and special adviser.

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