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Jan Oberholzer. The Eskom report is the third investigation into Oberholzer’s alleged wrongdoing. These three investigations have cleared Oberholzer of wrongdoing. (Photo: Waldo Swiegers / Bloomberg via Getty Images)
The report is the third investigation into alleged wrongdoing by Eskom COO Jan Oberholzer. All three investigations have cleared him of wrongdoing.
An explosive report from the CEO of Eskom André de Ruyter to Eskom’s board reveals Eskom’s position regarding the unproven allegations of corruption, nepotism and victimization orchestrated against COO Jan Oberholzer on social media and other platforms.
the Eskom Report, August 24, 2020, was presented to the Eskom board by De Ruyter at a board meeting on August 31, and deals with seemingly orchestrated and ongoing suggestions from the EFF, the Saftu union federation, Corruption Watch, and other elements that have suggested a relationship corrupt and confrontational on Oberholzer’s part. with Stefanutti Stocks, Black & Veatch and Aveng.
The Eskom report also deals extensively with unproven allegations from Eskom’s former CEO of Coal and Cleans Technologies, Mark Chettiar, who was also the project manager for the portfolio. disastrous Majuba railway project, and the new ash dam project at Camden Power Station where the delays caused the entire 1,600MW power plant to shut down for several months in late May, prompting at least one stage of load shedding in South Africa.
The Eskom report is the third investigation into Oberholzer’s alleged wrongdoing. These three investigations have cleared Oberholzer of wrongdoing, and this latest Eskom report clearly states:
“None of the investigations found any basis in the allegations of wrongdoing presented by Chettiar. It is recommended that the board endorse the actions of the chief operating officer for having been fair, transparent, procedural and professional in advocating and fulfilling his contractual mandate to serve the interests of his employer Eskom. “
In the report, Eskom’s CEO warns of an “emerging pattern of low performers defining themselves as whistleblowers when called to account, a trend that is totally at odds with the desired high performer culture Eskom is holding. trying to instill in their employees ”.
According to the Eskom report, Chettiar was absent due to illness on January 29, 2020 after, following a transparent process, he was transferred from his position as Managing Director of Coal and Cleans Technologies at Eskom to a similar post of the same grade at the Eskom human resources department. This was said to be due to poor performance and a breakdown in trust due to false and unproven allegations he made in a complaint process against the COO.
Since then, Chettiar has not returned to work or complied with work instructions, but continues to receive his full salary with benefits as Eskom’s CEO, while pursuing a victimization complaint at the CCMA. Chettiar also faces a disciplinary hearing that was presented to him on January 20 due to “serious unfounded and unsubstantiated allegations against the chief operating officer.”
Through his lawyers, Chettiar has also attempted to claim a 41 million rand compensation package from Eskom, while at the same time making allegations of corruption, nepotism and victimization through various channels including EFF, Saftu and Corruption Watch to the media against Oberholzer. .
The severance package presented through Chettiar’s attorneys would require Eskom to drop all disciplinary charges against Chettiar; all your legal costs will be paid by Eskom; all your medical expenses not covered by Eskom medical care; the total present value of its Eskom pension fund (estimated at R7 million) to be transferred to a conservation fund designated by Chettiar; Eskom will pay her full salary until she reaches retirement age in around 12 years (estimated at around 24 million rand); and a 10 million rand compensation to be paid by Eskom for the alleged damage to its reputation.
Documents seen by EE Business Intelligence indicate a number of alleged reasons and justifications for Chettiar for the above, including suggestions that despite his efforts, Chettiar is unable to find another job because he alleges that Eskom has damaged his reputation and caused him distress and psychological and emotional damage.
Sources indicate that Eskom’s board supports Eskom’s CEO and COO following the presentation of the report by De Ruyter at the August 31 board meeting, and that the report has since been delivered to the Minister of Public Enterprises, Pravin Gordhan.
Meanwhile, Chettiar’s former position as Managing Director – Coal and Cleans at Eskom was filled by Naresh Singh, Managing Director – Africa Strategy, who was attached to the Coal and Cleans portfolio as of February 1, 2020. This, according to the Eskom report, was to ensure the stability and continuity of service in this department, and to manage and oversee the execution of critical projects in Chettiar’s old portfolio.
In a later development, a landmark judgment of the superior court September 15 appears to vindicate Oberholzer’s position on a disputed payment of R40 million to Aveng, and undermines Chettiar’s suggestions that Oberholzer irregularly authorized this payment to Aveng.
According to the Eskom report, the payment of R40 million to Aveng had been authorized by Oberholzer on the recommendation of Chettiar, an official opinion of an outside legal firm, Edward Nathan Sonnenbergs (ENS), and after an independent arbitration agreement to Aveng’s favor in his dispute with Eskom.
Subsequently, Chettiar alleged to the Zondo Commission that it was a corrupt and irregular payment by Oberholzer. As a result, Eskom suspended payment pending the outcome of a court action by Aveng to enforce the arbitration decision.
The ruling now orders Eskom to pay Aveng the 40 million rand, plus interest on Aveng’s debt, plus the costs of Aveng’s legal action. Furthermore, the arbitrator has since ruled in favor of Aveng on claims that exceed another 16 million rand. Eskom CEO De Ruyter commented on September 19 that “the court ruling has now vindicated the COO’s position on the matter.”
Sources indicate that the Eskom board supports the Eskom CEO and COO following the presentation of the report by De Ruyter at the August 31 board meeting, and that the report has since been delivered to the Minister of Public Enterprises, Pravin Gordhan.
When asked for comment and response to a series of questions from EE Business Intelligence stemming from the Eskom report and the high court ruling, the minister responded through his spokesman Sam Mkokeli that the matter should be referred to Eskom’s board.
The Acting Chairman of the Eskom board, Professor Malegapuru Makgoba, in turn replied that: “The board will respond at the appropriate time.”
When given the opportunity to have the right of reply, Chettiar responded: “Kindly note that I am receiving legal advice on this matter and therefore I am not in a position to comment further.” DM
Chris Yelland is Managing Director of EE Business Intelligence.
