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Cape Town - The downgrade of Eskom by S&P Global Ratings reflects the state’s failure to hold executives and board members to account, the Organisation Undoing Tax Abuse (OUTA) said on Wednesday.
On Wednesday S&P downgraded Eskom to “substantial risk” as an investment with warnings of possible default.
To OUTA this illustrates the results of what the civil rights body deems to be "massive, systematic mismanagement of Eskom and the state’s failure to do anything to hold executives, boards or those implicated to account".
In OUTA's view, the failure to hold the corrupt to account is leading to the collapse of crucial institutions like Eskom.
“It is essential that the Hawks and the National Prosecuting Authority take action without fear or favour against senior public officials like Anoj Singh who are implicated in corruption,” said Ben Theron, OUTA’s chief operating officer.
“South Africans should not be expected to have to pay substantial increases in electricity prices and to have to foot further state bailouts for Eskom because of financial mismanagement and looting by failed executives who are allowed to avoid accountability.”
Singh resigned as Eskom CFO in January pending a disciplinary hearing. In OUTA's view he left a trail of unanswered questions on Eskom’s financials.
OUTA would like to see those implicated in wrong-doing prosecuted, the reasons for losses established and the missing money sought.
“Singh was instrumental in the siphoning of funds out of Eskom coffers for the ultimate benefit of the Guptas, so OUTA wants Singh to face both criminal charges and civil action to recover the ill-gotten funds,” says Ronald Chauke, OUTA’s portfolio manager for energy.
Resigning should not allow him to avoid prosecution, in the view of Theron.
During the parliamentary inquiry into Eskom, then MP Pravin Gordhan told Singh that he had been part of bringing Eskom, the biggest utility in Africa, to its knees.
In August 2017, OUTA laid charges of corruption and financial misconduct against Singh at the Randburg police station. In September, OUTA filed a complaint against Singh with the SA Institute for Chartered Accountants (SAICA), to have him barred from practising as an accountant or CFO. Neither case has been finalised.
The Eskom Inquiry resumed on Wednesday, hearing evidence from former Eskom executive Abram Masango, who was suspended last year.
He testified that he was requested to attend a meeting in March 2015 with former top Eskom executive Matshela Koko at Melrose Arch in Johannesburg. Masango said here they met with Salim Essa, a friend and business associate of the Gupta family, and discussed the suspension of four Eskom executives.
He told Parliament on Wednesday that Koko appeared to have conferred with Essa when making staffing decisions at the power utility.
Koko, who previously served as power utility's acting CEO and head of generation, resigned from Eskom two weeks ago, while still proclaiming he was innocent of any wrongdoing.
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