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Matshela Koko at the parliamentary inquiry into alleged corruption in the electricity company on January 24, 2018 in Cape Town, South Africa. (Photo by Gallo Images / Sowetan / Esa Alexander)
Testimony to uncover the truth behind Eskom’s executive suspensions in 2015 continued at the Zondo Commission on Thursday, October 8. On the bench was Venete Klein, a former non-executive board member.
On March 12, 2015, Eskom chairman Zola Tsotsi announced that despite no suspicions of wrongdoing, four executives were standing aside pending an investigation.
The suspension of CEO Tshediso Matona, CFO Tsholofelo Molefe, group capital executive Dan Morokane and business and technology executive Matshela Koko dealt a severe blow to the struggling power company.
Weeks after the suspensions took place, the global rating agency Standard and Poor downgraded Eskom to trash status.
Testimony in the Zondo Commission in recent weeks has focused on unraveling the mystery behind the suspension of the four executives and the subsequent re-election of Matshela Koko.
Evidence presented to the commission Thursday by former non-executive board member Venete Klein suggested that the board may have been under the control of an outside force.
Klein spoke of a perceived resistance from some board members to reinstate the suspended executives after the investigation, proposed at the time to deal with alleged executive misconduct, failed to materialize.
However, Koko did not meet the same level of resistance from the delegation (of which Klein was a part as chair of the people and governance subcommittee at Eskom) charged with facilitating settlement agreements with the four suspended executives.
Pule Seleke SC, at the head of the evidence, pointed to an affidavit submitted by Suzanne Daniels, Eskom’s former chief legal and compliance officer, that during a meeting with Koko to discuss her settlement agreement, a meeting that Klein attended, Koko “got lyrical” about why it should be reinstated.
“Ms. Daniels writes, ‘Unlike the previous two meetings, Mr. Koko was given plenty of time to express his feelings on the issues of his suspension,’” Seleke said, reading the affidavit submitted by Daniels to the commission.
This opportunity was not given to the other executives.
Daniels’ affidavit also stated that Klein had asked Koko if she could trust the board in the future and asked her to return to Eskom.
“I don’t recall being given more time,” Klein responded in her testimony. “I remember the man started talking about his career at Eskom, and how his blood is blue and he is not going anywhere.
“But if you ask me if he has more time than the others, it didn’t seem to me at the time that I was giving him more time. I’m not sure if I can agree that they gave him more, but if it was more because someone was timing, I can’t argue with that, ”she added.
Klein’s evidence suggests that Koko was adamant that she would not leave her position, contradicting Daniels’ evidence that Koko was treated differently from the other suspended executives.
“I entered that meeting the same way I entered the meeting with Tsholofelo [one of the suspended executives]. Tsholofelo said that he did not want to leave and the discussions continued on other things.
“This gentleman [Koko] He literally walked in… he sat down and began to tell the delegation that his blood is blue… that he is going nowhere, ”said Klein, reinforcing her initial point.
She told the commission that after Koko’s speech, despite her reservations about him, she felt that “this is someone who is not willing to leave Eskom.”
Former Eskom President Jabu Mabuza previously testified before the commission on Koko’s questionable conduct when he returned after his four-month suspension.
“Koko is accused of sending nearly a dozen emails to an email address … deemed widely used by Gupta’s boss, Salim Essa, on his first day back at the office on July 20 of that year”. Daily maverick wrote journalist Jessica Bezuidenhout at the time.
At 3:00 p.m. Thursday, Klein’s testimony was still unclear who initiated the suspension of the four board members and why Koko was later reinstated.
However, Tsotsi’s testimony before the commission on September 9, 2020 suggests that Dudu Myeni, who was SAA president at the time, along with former president Jacob Zuma and one of the Gupta brothers, orchestrated the plan to oust the executives.
Former President Testifies That Dudu Myeni Told Him How To Fix Eskom
According to Tsotsi’s testimony, this could have been done to plant Gupta / Zuma allies who would ensure that contracts are diverted to the benefit of their business interests.
The suspensions cost the state company R18.2 million in exit agreements for three of the four executives.
“The decision on the idea that there should be an investigation at Eskom, and that certain executives should be suspended, came from outside Eskom,” said commission chair Raymond Zondo.
“I agree with that, President,” Klein responded.
“The question that arises is, who did it originally originate with… and what was its agenda,” asked Zondo, who went on to share two possible scenarios.
“It’s possible that some board members knew quite well where the idea came from and who was really behind this idea, but they had no problem following it.
It’s also possible that “some of the board members didn’t know these things, they didn’t know where this idea really came from, and they only knew what was being said at the meeting. Some may have been fooled. ”
The commission will hear testimony on Friday, October 9, from two more witnesses. This will take place after the commission hears a subpoena request that will be issued on former president Jacob Zuma to appear before the commission. Zuma refuses to appear, instead demands that Zondo recuse himself. DM
