BLSA willing to work with Eskom - on certain conditions

Cape Town - Business Leadership South Africa (BLSA) is open to working with Eskom to address "activities that are legally or ethically questionable".

BLSA is an independent association, whose members include leaders of some of SA’s biggest and most well-known organisations. The business body recently suspended Eskom as a member.

The suspension from BLSA relates to what the organisation calls "serious allegations of corruption and state capture". BLSA is of the view that dramatic change is needed at Eskom, because it is an important component of the SA economy and systemically linked to SA’s fiscal stability.

In a statement issued on Monday, BLSA said it is open to work with Eskom and other suspended members "to explore their commitment to addressing those governance and organisational failures that have resulted in activities that are legally or ethically questionable".

BLSA CEO Bonang Mohale has already met with acting Eskom CEO Sean Maritz at Eskom's request, with their first meeting taking place towards the end of September.
 
“Eskom’s suspension is in full force and effect, and will remain so until BLSA is satisfied that all the factors that led to the suspension have been addressed fully,” said Mohale.

• READ: BLSA to accompany Eskom to NY investor conference
  

These include transparent and thorough investigations into abuses; full disclosure of and cooperation with any investigations and prosecutions that may follow; and action taken against all individuals implicated in corrupt acts.
 
"BLSA believes, in the light of repeated and serious governance failures, that Eskom needs a complete new board and management team comprising individuals who are not conflicted, have impeccable credentials, and who have a solid track record with relevant industry expertise," said the BLSA.

To this end, the BLSA calls on the government and Minister of Public Enterprises Lynne Brown to replace the entire board and management of Eskom. This would be so that "the turnaround of the utility’s operational integrity and the restoration of its balance sheet can begin urgently".

It was announced on Friday that BLSA will accompany Eskom to an investor conference in the US in November to help buttress investor confidence in SA.

Eskom indicated in a media statement last week that it had met with BLSA's leadership for “robust and positive" interaction.

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