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Former Eskom board member and Acting Chief Executive Officer Zethembe Khoza, who testified before the Zondo commission on Wednesday, said former Public Business Minister Lynne Brown met with the board on March 11, 2015 and requested an investigation to discover and help solve some of the problems at Eskom. . (Photo: Gallo Images / Luba Lesolle)
Zethembe Khoza, a former Eskom board member and former acting CEO of the utility company, testified before the Zondo commission that former public companies minister Lynne Brown had undue influence over the board’s decision to suspend four of its top executives.
In 2015, Zethembe Khoza had been in his position as a member of the Eskom board for only a few months when problems at the energy company prompted an investigation and the suspension of four top executives.
Khoza, who testified before the Zondo commission on Wednesday, said former Public Business Minister Lynne Brown met with the board on March 11, 2015 and requested an investigation to discover and help resolve some of the problems at Eskom.
“He expressed concern about the operations at Eskom. The cargo shedding was affecting the country, the economy and the people of South Africa, ”Khoza said. In addition to the procurement problems, Brown also appeared concerned about Eskom’s finances after receiving an email saying the utility was unable to pay wages at the end of March.
Brown emphasized that the investigation must be independent, in other words, it must not have any interference from people in the management.
“Did the minister talk about the suspension?” Zondo asked.
Khoza replied: “Although it was not explicit, but the fact that executives should be set aside for the investigation to continue with full credibility.”
According to Khoza, the then-president, Zola Tsotsi, had informed the board at an earlier meeting on March 9, 2015 that Brown and Jacob Zuma had “instructed” the investigation to be launched. At this meeting, there was allegedly no mention of suspensions.
But the question of who it would be suspended before the investigation began.
Defender of the leader of the evidence, Pule Seleka, said that two meetings revealed that the strings were being pulled behind the scenes.
Tsotsi has testified that he was called to a meeting with Zuma and Dudu Myeni, the former president of South African Airways, at Zuma’s residence in Durban. At this meeting, attendees were asked to drive the investigation and were given three names of executives who would be suspended.
The Eskom coup of 2015: Matshela Koko calls senior executives and Salim Essa holds court at the Arch of Triumph at Melrose Arch
On March 10, 2015, former Eskom Chief Legal Officer Suzanne Daniels was summoned by business and technology executive Matshela Koko (with Gupta’s henchman Salim Essa) to a meeting at Melrose Arch, Johannesburg. At the meeting, he was asked about the suspension process and told that four executives would be suspended: Chief Executive Officer Tshediso Matona, Group Capital Executive Dan Marokane, Chief Financial Officer Tsholofelo Molefe and Koko himself.
“It turns out that they are exactly the executives that the board will ultimately suspend,” Seleka said.
Three of the four executives were paid millions to quietly leave Eskom, while Koko was subsequently reappointed.
According to Daniels, at this meeting, Essa had introduced himself as Brown’s “advisor.”
Testifying before him commission in september, Tsotsi said: “I had the clear impression that there might be an orchestration of some exercise here to replace the top layer of the Eskom people with some people who are associated with the Guptas.”
Gupta’s hands pulled the strings of Eskom – former president Zola Tsotsi
Weeks after the suspensions took place, global credit rating agency Standard & Poor’s (now S&P Global) downgraded Eskom’s rating to “junk.”
“Was the board not influenced and manipulated to make certain decisions?” Zondo asked.
“Based on the evidence presented, it is possible,” Khoza replied. “It is unfortunate that at the meeting on the 9th, Mr. Tsotsi did not mention where the information came from. If it were Dudu Myeni, who does not work for Eskom, the debate would be completely different. “
Tsotsi told the commission in September that Myeni had improper knowledge of the utility. Myeni, who led the meeting at Zuma’s residence, had essentially advised Tsotsi on how to “fix Eskom.”
Former President Testifies That Dudu Myeni Told Him How To Fix Eskom
The commission was meant to hear evidence from both Khoza and former Eskom director Viroshini Naidoo, who did not bother to introduce themselves. At the start of the proceedings, Seleka visibly upset said that Naidoo had filed her affidavit on Tuesday and her lawyers had requested that her evidence be postponed to a later date.
“It is unacceptable,” Zondo said.
The commission continues Thursday to hear Eskom-related evidence from former Trillian employee Mosilo Mothepu and evidence about McKinsey’s money flows from senior partners Jean-Christophe Mieszala, David Robert Fine and Alexander Weiss. DM
