Meanwhile it’s been revealed that the man who served as CEO of Eskom for only eight months, Brian Molefe was paid R8.9 million – including a R2.1 million bonus – during the 2016/17 financial year.
Molefe was paid R9.5 million in the prior year, but this was for a full 12 months of work. His 2016/17 salary translates to over R1.1 million a month, compared to the R790,000 he earned in 2015/16.
According to media reports Koko allegedly awarded tenders worth R1 billion to Impulse International, a company of which his step-daughter is a Director. The DA says it points to a type of nepotism of the highest order. “Koko’s absurd explanation (that he was unaware that his stepdaughter was involved with Impulse International) brings into question his ability to lead Eskom, and his very integrity.”
Responding to the news that Eskom will be action against Koko, the DA warns that there are still a number of likely compromised individuals at the helm of Eskom who must be dealt with decisively “if we have any hope of solving the multiplicity of problems at the entity”.
Chief among these, says the DA, is Eskom’s Gupta-linked CFO, Anoj Singh, “who should be immediately suspended and investigated for his involvement in the outrageous 72% discount Eskom gifted the Guptas to acquire Optimum.
“Singh’s ridiculous explanation as to why Eskom reduced the original R2.1 billion fine, to R577 million, simply won’t fly. Instead of being suspended and investigated, he has been rewarded with a bonus of R1.8 million for the year.”
The DA says Eskom executives cannot continue to protect the Guptas at the power utility’s expense any longer. “The truth is, Eskom’s announcement of disciplinary action against Koko today, is simply a smokescreen to cover up the glaring financial troubles at the power utility.”
The power utility’s finances shows concerning figures:
- R355.3 billion in debt securities and borrowing, which is a 10% increase from 2016’s R322.6 billion,
- Net profits plummeted by 82%, from R5 billion to less than R1 billion.
It is evident that Singh is failing in his role as CFO, and the DA will now explore avenues to bring Singh to book for his role in the deterioration of Eskom’s finances.
