/ 7 June 2010

Maroga begins compensation claim against Eskom

Maroga Begins Compensation Claim Against Eskom

Jacob Maroga’s R85-million compensation claim began in the South Gauteng High Court on Monday with arguments over who was allowed to fire him from his job as Eskom CEO.

His counsel, Vincent Maleka, began by saying Eskom was a public entity and an organ of government.

In terms of their articles of association — which governs relationships between a company’s directors and shareholders — the public enterprises minister (Barbara Hogan) could appoint a CEO after consultation with the board.

However, the articles are silent on who can fire him. But if the minister could appoint him, it was absurd that she could also not dismiss him.

Last October there was confusion over whether Maroga had resigned from the power utility or not. The board eventually said he had resigned and they had accepted it.

However, Maroga maintained he had not resigned. The board then fired him in November. Maleka said this was to make it clear that his contract had been terminated. Maleka said he wanted to make it plain to the court that he wanted the benefits that he would have been entitled to if his contract had run its full term.

The hearing continues. — Sapa