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Former Eskom chairman Ben Ngubane claimed to ignore the irregularities at Eskom when he testified before the Zondo Commission of Inquiry about the state capture on Tuesday. (Photo: Gallo Images / Luba Lesolle)
The former Eskom president appeared to be ignorant of the “external forces” pulling the strings at Eskom during his tenure. Testifying before the Zondo commission on Tuesday, he claimed he was not aware of dodgy dealings regarding Brian Molefe’s appointment as Eskom CEO in 2015 or the R1.68bn prepaid deal for Gupta-owned Tegeta Exploration and Resources , later that year.
Former Eskom chairman Ben Ngubane claimed to ignore the irregularities at Eskom when he testified before the Zondo Commission of Inquiry about the state capture on Tuesday.
Answering test leader Pule Seleka’s questions about Brian Molefe Appointed as Eskom CEO in April 2015, Ngubane seemed surprised that Gupta’s top henchman, Salim Essa, had “predicted” Molefe’s move from Transnet a year before the event.
“I am really surprised, President,” said Ngubane.
“I don’t think we have that many powerful prophets in the country,” he laughed.
But according to the evidence from Henk Bester, the former managing director of railways at Hatch, this “prophecy” was no laughing matter. Bester, who testified before the commission in Octobersaid that during a business meeting with Eskom’s former chief financial officer (CFO) Anoj Singh in 2014 and Essa, the Guptas’ right-hand man, flaunted their connections with powerful people, saying that “they” had already decided that Molefe would be Eskom’s CEO.
“This is a coincidence or an orchestration,” said Seleka.
So far, no one has questioned Bester’s testimony, according to the commission’s chairman, Supreme Court Vice President Raymond Zondo.
Ngubane says he was also surprised by the suspension of four senior executives in March 2015, following a fake query in the parastatal. He called the suspensions random, with no “plan.”
He stated that former Minister of Public Enterprises Lynne Brown suggested to the board that Molefe be seconded by Transnet to act as CEO of Eskom.
But Brown’s affidavit painted a different picture.
“The boards of Transnet and Eskom quietly negotiated the transfer of Mr. Brian Molefe and Mr. Anoj Singh to Eskom. My role as representative of the shareholders was to approve the negotiated results ”, read Seleka. Brown’s presentation went on to raise questions about “the legality” of the transfers.
Brown announced the appointment of Molefe on April 17, 2015.
Ngubane said he was not surprised that Molefe was chosen for the position based on his credentials and capabilities. “If I were a mediocre person, I would say that something is wrong.”
And it appears that Ngubane saw nothing wrong when on December 10, 2015, the board was given 24 hours to agree to the prepayment of Optimum Coal Mine (OCM) R1.68 billion, a deal that would ultimately benefit the Guptas.
He stated that former Eskom Chief Legal Officer Suzanne Daniels, who testified on monday Regarding the deal, he approached him with the documents one afternoon and indicated that the decision was an “emergency” and that he had already passed through the Investment Financing Committee (IFC) according to protocol.
In Ngubane’s view, the deal was to secure a year’s supply of coal in case Optimum collapsed. The company was in the process of business bailout at the time and coal supplies for the Hendrina, Arnot and Komati power plants were in jeopardy.
He said he knew nothing of the deal before Daniels told him; However, he had testified that three days earlier, he received a phone call from Ngubane requesting that he help then-Eskom Group CEO Matshela Koko and Singh draft the documents for the agreement, which would be sent to the board the following day.
Ngubane emphatically denied this and expressed “disappointment” in Daniels, whom he “trusted.”
But soon after, the documents reached the hands of Trillian boss Eric Wood, a former Nazeem Howa, CEO of Oakbay and “Business Man”, an anonymous character linked to gupta’s email address [email protected]
“[Business Man] he writes an email and says there is a requirement for PFMA, he doesn’t want that, and number two, he shouldn’t go to IFC, he should go directly to the board, ”said Seleka, referring to the evidence.
The day after Eskom’s board approved the deal, Singh decided on his own that it should become a guarantee to benefit Gupta-owned Tegeta Exploration and Resources, rather than a cash payment to Optimum. Tegeta was going to acquire Optimum, but it was never mentioned in the board’s decision.
The investigation will continue to hear evidence related to Eskom this week. DM
