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Johannesburg – Brian Molefe’s reinstatement will intensify the negative impact of the credit rating downgrade, said the CEO Initiative.
The CEO Initiative released a statement objecting to Molefe’s return to Eskom on Friday.
Molefe quit in November 2016 following former public protector Thuli Madonsela’s State of Capture report and has been a Member of Parliament for the past three months.
The Eskom board rescinded Molefe’s application for early retirement after Public Enterprises Minister Lynne Brown objected to a R30m pension payout for the former CEO, explained board spokesperson Khulani Qoma.
READ: Molefe will return to Eskom as CEO
The CEO Initiative pointed out that this decision will add to the “political and institutional uncertainty” in the country.
“We believe this action is disrespectful to the citizens of South Africa, and sends a worrying message to investors and ratings agencies about the country’s commitment to good governance and tackling inefficiencies at state-owned entities.”
The CEO Initiative shared sentiments with the ANC, which criticised the move, calling it "unfortunate and reckless”, Bloomberg reported.
ALSO READ: ANC rejects 'reckless' return of Molefe to Eskom
Similarly, Business Unity South Africa (BUSA) said Eskom’s decision is “not in line with the expected levels of accountability and ethical leadership”.
“The return of Mr Molefe as CEO of Eskom is inopportune, indefensible and undermines government’s messages around promoting good governance at state-owned companies,” said CEO Tanya Cohen.
Cohen added that Eskom is viewed as a “vital entity” for the health of the economy and its attractiveness as an investment destination.
ALSO READ: Parliament must launch inquiry into Eskom as Molefe returns – DA
The Democratic Alliance intends to write to the Parliamentary Enterprises committee, requesting it to investigate the reappointment.
