The Eskom board’s loss of confidence in the ability of chief executive Jacob Maroga to lead the parastatal, coupled with an irretrievable breakdown in the relationship between it and Maroga, led to Maroga’s resignation.
Board chairperson Bobby Godsell announced the resignation to Eskom staff on Thursday afternoon.
But there were indications on Thursday of an 11th-hour attempt to possibly reinstate him.
Maroga’s resignation follows a week of uncertainty over the leadership of one of South Africa’s most important parastatals.
The Mail & Guardian has copies of board documents issued at a meeting held last week, where the board’s relationship with Maroga finally came to a head.
‘I am very concerned at the capacity of management to respond both effectively and quickly to the very many major challenges now facing Eskom,†reads a note from Godsell to the board.
The note includes 41 concerns regarding issues identified for action on the part of Eskom management that were left incomplete or late in their execution.
Godsell expresses concern at the stress and responsibility placed on Maroga and his executive team and even suggests that Maroga be given the support of a chief operating officer.
A senior alliance source briefed on developments told the M&G that Maroga had first offered to resign a week ago, after the board heard both Maroga and Godsell on their visions for Eskom’s future. When the board made it clear it preferred Godsell’s approach, Maroga offered to quit as shortly afterwards did Godsell. Both men were asked to leave the meeting and the board elected to accept Maroga’s offer and to keep Godsell said the source.
A total media blackout from Eskom has left the public with no official response on Maroga’s actual status within the company. A press conference scheduled for Thursday at 1pm, after the staff announcement on Maroga’s resignation, was cancelled at the last minute.
Maroga is believed to have tendered his resignation to the board, but Godsell was called away to a meeting with Hogan before the scheduled press conference.
The M&G understands that a number of influential political figures did not want to see Maroga go, but that Hogan had told Luthuli House that she supported the board’s decision.
In a statement to the media on Thursday Hogan confirmed that the relationship between the board and Maroga had broken down. ‘As shareholder, government has indicated to all relevant parties that this matter should be resolved expeditiously, with due regard to every single person’s dignity and rights,†she said.
‘We are confident that all parties do have the best interests of the country at heart and that they will resolve this matter with the urgency that it deserves.â€
Sources who declined to be named told the M&G that there has been a great deal of unhappiness at senior management level regarding Maroga’s leadership.
In September senior Eskom staff wrote a letter to Hogan complaining about Maroga’s leadership. At the time it was reported by the Citizen that staff accused Maroga of allegedly refusing to allow senior management personnel an opportunity to tackle pressing issues with the company’s executive committee. They also alleged that Maroga refused to implement a cost-cutting measure proposal tabled by the senior staff.
During this period internal documents were simultaneously leaked through the Democratic Alliance. They include a damming report by consultant Susan Olsen given to Maroga six months before the January 2008 load-shedding, pointing to massive problems in the company’s coal procurement unit.
Eskom’s coal mismanagement was one of the chief reasons the country was plunged into darkness last year.
A source told the M&G that there was insufficient trust between Maroga and his exco staff and that he was inclined to listen to consultants rather than listen to his internal team members.
It was also felt that there was no action being taken to address the dire state the organisation found itself in.
The relationship between the board and Maroga has been deteriorating for some time, sources allege. ‘Between himself and the board, there was a feeling that [Maroga] believed he was in charge,†said one.
Godsell, Eskom and the public enterprises department were unavailable for comment.