/ 11 November 2009

Eskom pleads for patience on Maroga

The board of Eskom was expected to release a statement to clarify the fate of CEO Jacob Maroga on Wednesday, the Star newspaper reported.

“Please be patient with us,” acting chairperson Mpho Makwana was quoted as saying.

The board, whose chairperson Bobby Godsell has resigned, had been expected to release a statement on Tuesday, amid reports that Maroga was prevented from entering his office.

But the paper said the statement would be released on Wednesday and that a media briefing would be called before the end of the week.

“We will communicate when we are able to say something meaningful,” said Makwana.

Several newspapers quoted senior employees as saying Makwana took steps to prevent Maroga from returning to his office.

“I think these matters will be considered a little later,” said Public Enterprises Minister Barbara Hogan.

The board apparently maintains that his resignation on October 28 remains valid, despite Maroga sending Hogan a letter on Monday to say that he was still the CEO of the electricity utility.

The Star said Maroga was apparently prevented from entering Eskom’s premises on Tuesday.

Serious implications
Meanwhile, Alistair Sparks, a political analyst at Standard Bank Securities, said the lack of government backing for the board would have serious implications for when Eskom needs to raise funds for its R385-billion expansion programme.

“Serious institutions will be much more reluctant to lend money to Eskom and if they do, it will be at a much higher interest rate because the risk seems to be higher,” he said.

Eskom’s leadership crisis is the latest in a series of disputes at South Africa’s state-owned enterprises, raising doubts about the ability of President Jacob Zuma and Hogan to provide leadership.

“Government intervention may be the prime cause of current chaos in the company,” investment bank Fairfax said in a research note, adding that Eskom’s ability to supply South Africa’s key mining industry could be jeopardised as a result.