FEDUSA Slams Koko’s Reinstatement
The Leadership Federation of Unions of South Africa (FEDUSA) is outraged at the outcome of the disciplinary proceedings that was publicized today, clearing the acting CEO of Eskom, Matshela Koko, of all charges. The Chairman, Advocate Mzungulu Mthombeni, ordered Koko’s reinstatement
The seriousness of the charges, in particular Koko’s failure to declare a conflict of interest owing to his stepdaughter owning shares in a company awarded an Eskom tender, by a division Koko led, continues to fuel public perceptions of greed, corruption and the capture of our key state-owned companies (SOC’s). During Koko’s tenure as acting CEO of Eskom, Impulse International was awarded a string of contracts worth nearly R1 Billion ; the very company that his stepdaughter, Koketso Choma held directorship and shareholding in. Given the extent of scandals that have besieged Eskom throughout the year, alongside the credit – ratings downgrade the utility received, Koko’s reinstatement makes it awfully difficult to expect that there would be any public confidence or any credibility in the disciplinary proceedings, said FEDUSA General Secretary, Dennis George.
“On what basis the outcome was awarded remains seriously questionable and casts extreme doubt on the ability of the ailing power generator to distance itself from continued corporate instability, mismanagement and captured attacks”, argued George. During June 2017 FEDUSA called for a judicial inquiry following the resignation of former Board Chairperson Ben Ngubane, in light of the damning revelations of the capture of Eskom leadership by the Guptas, and the breakdown of corporate governance.
FEDUSA’s membership and the South African consumers at large remain hardest hit by the ridiculous double digit increases in electricity hikes awarded over the years, whilst corruption and greed continue unabated at the power utility, who continually fails to meet the demands of South African consumers and businesses alike. Whilst FEDUSA welcomed the recent announcement of NERSA’s rejection of Eskom’s application for a 20% tariff hike for 2018, the 5,23% tariff increase awarded for a 1 – year period, still remains above inflation and continues to place extreme pressure on the working class of South Africa and stifles economic growth.
FEDUSA believes that the direct attempts of intimidation during the hearings have been utterly disgraceful, as key witnesses have cried foul over a campaign of intimidation designed to silence them. With Koko’s hearings been described by analysts as a farce, alongside the disciplinary process being tainted by board interference, FEDUSA calls on Minister Lynne Brown along with the Board of Directors, who have failed miserably in executing strategic leadership, to use this opportunity to rectify the wrongs that have been ongoing, by appealing the decision and launching a full – scale, independent, investigation into the matter.