Judgment reserved in Matona suspension case - as it happened

Matona has 'no idea' why he was suspended

Sapa: Eskom believed there was nothing to show that Matona's reputation would be irreparably harmed by waiting for the outcome of the inquiry. But Judge Benita Whitcher interjected: "Isn't Eskom itself vague about that? There is nothing in the papers to show when this inquiry is going to start."

From Sapa: Eskom questions why CEO Tshediso Matona's suspension should be lifted before the outcome of his case at the Commission for Conciliation, Mediation, and Arbitration, the Labour Court in Johannesburg heard on Thursday. "... This is frustrating the work of the board to try and steady the ship," said Eskom's counsel Paul Kennedy SC of Matona's dual application to the court and the CCMA. He said load shedding and Standard and Poor's downgrading of Eskom's rating would not suddenly end if his suspension was lifted.

Redding said Matona's reputation was suffering and his dignity was hurt as a result of his suspension.

City Press reporter Poloko Tau: Redding said Matona's suspension letter was probably "pre-written" before he was suspended on March 9. He said his client had attend the meeting that day, knowing that the only agenda item was a proposed resolution for an independent inquiry into the affairs of Eskom.

Redding: He  (Matona) was only told of inquiry into possibility power delivery may be compromise by intentional or negligent conduct.

Redding: No allegations of misconduct were brought up. It was not said you are guilty of providing unreliable information.

Matona's attorney Andrew Redding: The question is did Matona have an opportunity to deal with the allegations?

Scene back in court: After lunch break, suspended CEO Tshediso Matona seemed less relaxed with his eyes staring straight at Eskom lawyer Advocate Paul Kennedy SC as he teared into his case. His eyes remained fixed on Kennedy despite him changing positions from folded arms to stretching arms on the bench's long backrest.

Presidency statement: The Presidency will not entertain the rumours and gossip about the operations at Eskom as that will not assist the process at hand, the imperative task of implementing the urgent medium term plan to enable the country to manage the energy shortages.

Presidency statement: President Jacob Zuma has been kept fully briefed about the developments at Eskom and the attempts being made by the Minister of Public Enterprises, Ms Lynne Brown and the Board to meet the energy challenge facing the country.

Presidency statement: The Presidency wishes to encourage all stakeholders to provide the needed support and to focus on assisting Eskom and the Department to take the country on the route to energy sufficiency.

Presidency statement: Eskom is receiving full support from the Department of Public Enterprises, the Presidency and government as a whole to improve operations and implement the energy security plan. Deputy President Cyril Ramaphosa leads the government support efforts.

Outside of court: The Presidency just announced Eskom is receiving support from government.

Numsa: "Numsa holds the view that a full, independent and genuine investigation of Eskom and the entire South African energy and industrial regimes, with a view to replacing this regime with a socialist and democratic energy regime, are essential and necessary if South Africa must have an energy regime capable of servicing its needs, post 1994."

Numsa: "As chairperson of the Eskom Board for more than four years now, Tsotsi must know as he should, all about the administrative, financial, commercial and technical causes of the crises at Eskom. If he has not discovered this in the past four years, how much longer does he want to understand the causes of the crippling crises at Eskom?"

Numsa: "Mr Zola Tsotsi, Chairperson of the Eskom Board surely must know that he cannot act as investigator, jury and judge in his own cause?"

Numsa: "We find it extremely disturbing and thoroughly mind-blowing that the Minister of Public Enterprises – Lynne Brown – under whom Eskom falls must claim ignorance of the true causes of the crisis at Eskom, and that she should support the suspensions of the four executives at Eskom."

Numsa: "The recklessness and unceremonious suspensions of the four executives at Eskom have simply added more fuel to the already existing public perception that Eskom is riddled with deep seated systemic, structural, organisational, administrative and financial crises."

"Numsa is alarmed and dismayed by the recent developments at Eskom where the new CEO of Eskom has been suspended with three of his senior executives."

The National Union of Metalworkers of South Africa (Numsa) said in a statement on Wednesday that "the decision to suspend the four senior executives was reckless, without due regard to the damage to the public image of Eskom the decision would cause, and more dangerously, the suspensions are completely oblivious to the centrality of Eskom to the economy and society of South Africa."

Sapa:

Redding said: "Absent is any statement to Mr Matona that he is guilty of misconduct... or that there is any suggestion that he is guilty of misconduct. Not one statement."  

He said it was fundamental to a fair hearing that a person knew what they were alleged to have done. "But they didn't do that."  

Redding said on Wednesday between 18:00 and 23:00 "remarkably the notice of suspension appears to have been typed up... and signed... It is the fastest that Eskom has worked in many, many years".  

He was given no time to deal with the representations and was in fact "confused". He was not given the relevant information on what he was supposed to have done.    

Sapa:

On March 12, Tsotsi said four senior Eskom executives were asked to step aside as the power utility embarked on a fact-finding inquiry.  

At the time he told reporters: "To ensure that this process is as transparent and uninhibited as possible, the board has also resolved that four of its senior executives, including the chief executive, should step down for the duration of this inquiry."  

Redding said at the time, news reports quoted Tsotsi as saying there was no suspicion of wrongdoing against them.  

The other three are finance director Tsholofelo Molefe, group capital executive Dan Morokane, and commercial and technology executive Matshela Koko.

Sapa:

Matona asked Tsotsi if he was being suspended and whether he should report for work the next day.  

"He was not saying I must not report for work the next day, and he avoided the word suspension," said Redding, referring to what Matona was told.  

Matona had explained that a recusal was different to a suspension. A suspension implied wrongdoing.  

Matona said the new board had not had time to properly consider the company's problems.  

In light of Matona's refusal to recuse himself, on March 11 he was suspended.

Sapa:

On March 10, there was another urgent board meeting. Brown attended that one, although the legal basis for her attendance was not entirely clear, said Redding.  

At a certain time in the meeting, Matona and other executives were asked to leave.

There was some discussion on whether there were listening devices in the boardroom or not. It was not clear if there was an investigation into this.  

Later, the chairperson told Matona the board had resolved to institute an independent inquiry and Matona was asked to recuse himself as chief executive.

Sapa:

On February 25, Matona was told the meeting was postponed at the request of Public Enterprises Minister Lynne Brown, who represents Eskom's shareholder, the government.  

The following day, the company secretary was asked to convene an urgent meeting. Attached to the notice of the new meeting was a proposed resolution calling for an independent inquiry into the parastatal's affairs.  

Redding said it was not an inquiry into misconduct by any person, nor an inquiry into dishonesty.  

The meeting went ahead and board chairperson Zola Tsotsi proposed that a resolution for an inquiry be adopted. But, submitted Redding, the board disagreed on the resolution.  

Tsotsi closed the meeting and said he was going to report to the minister.

Sapa:

Presenting the timeline, Redding said there was to have been a meeting in the last week of February at which Matona was to present the chief executive's report and make a presentation on initiatives.  

This was part of an attempt to deal with problems in the organisation.  

Cabinet had already established a War Room committee, chaired by Deputy President Cyril Ramaphosa, to deal with problems at the power utility.

SAPA:

Eskom CEO Tshediso Matona challenged his suspension in an urgent application in the Labour Court in Johannesburg on Thursday, as the power utility announced more blackouts.  

"The application is essentially asking this court to set aside the suspension," his counsel Andrew Redding SC said.  

He told Judge Benita Witcher that Matona, who was in court, had submitted a complaint to the Commission for Conciliation, Mediation, and Arbitration (CCMA).  

He wanted the suspension set aside so that the CCMA could deal with the fairness of it.   Redding said Matona was suspended on March 11, less than six months after starting on October 6, 2014.

The hearing has adjourned for lunch.

Kennedy said Matona was suspended after War Room concerns that they were getting unreliable info from management.

Eskom's Advocate Paul Kennedy SC said Matona's suspension was pending a maximum period of three months.