Business Report Economy

Numsa calls for Eskom board to resign

Zintle Mahlati|Published

Eskom CEO Brian Molefe announced his resignation ten days after the release of Thuli Madonsela's State of Capture report. File photo: Simphiwe Mbokazi Eskom CEO Brian Molefe announced his resignation ten days after the release of Thuli Madonsela's State of Capture report. File photo: Simphiwe Mbokazi

Johannesburg - The National Union of Metalworkers SA (Numsa) has called for Eskom’s board to resign in response to observations found in the Public Protector’s State of Capture report.

The union, which had remained mum on the matter since the report was released two weeks ago, said the allegations of possible corrupt activity were too serious to allow Eskom’s board and CEO Brian Molefe to remain in charge of the state-owned entity.

Numsa’s calls follow Molefe’s announcement last Friday that he was resigning from his post at the end on December.

Days later, Eskom board member Mark Pamensky also resigned as a member of Eskom’s board.

The public protector’s report made various observations that raised questions on the notorious Gupta family’s relationship with Molefe.

It said that Eskom could have acted unfairly to run Optimum Coal Mine into business rescue opening a window of opportunity for Gupta owned company Tegeta to purchase the mine, following Eskom’s authorisation of a coal pre-payment of R660 million.

The report also mentioned a possible relationship between Molefe and Ajay Gupta, after cell phone records showed that he had called him multiple times between August last year and March this year.

Molefe cell phone records also placed him in the vicinity of the Gupta’s Saxonworld home on 19 occasions.

Numsa said on Wednesday that although these allegations were still to be tested in a Commission of Enquiry, the allegations raised questions on who should be on the boards’ of state-owned enterprises (SEOs).

“Numsa has consistently opposed privatisation of public entities, called for the rationalisation of Arcelor Mittal SA and Sasol and the nationalisation of other strategic industries. But it now clear that SOEs all need to be run far more democratic and socially responsible way,” said Numsa general secretary Irvin Jim.

The former Cosatu affiliate, which has thousands of members at Eskom, said that far too many SOEs had become entangled in corrupt activities.

It warned that it had previously questioned the outsourcing of coal mining, which Molefe rejected.

“If public ownership is to achieve the social objectives than it will have embrace all the key sectors of the economy so that they can integrated into a coherent development plan of production, “ said Jim.

Numsa also called on the new Eskom board to reverse the trend of corruption and be run in the interest of workers.

“This should then set the pattern of all SEOs and other industries which need to be nationalised so that we can create a socialist SA based on the Freedom Charter,” said Jim.

Labour Bureau