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Eskom crisis deepens after Maroga quits  Comments
November 6, 2009


By Louise Flanagan

Eskom's board had to choose between CEO Jacob Maroga and chairman Bobby Godsell - and chose Godsell.

Now Eskom must find someone to take on the country's most unpopular job.

Yesterday, Godsell told staff at Eskom's head office at Megawatt Park in Sunninghill, Sandton, that Maroga had resigned.

A media briefing on the matter was cancelled at the last minute as Godsell rushed off to an urgent meeting about the matter.

It's believed Maroga is trying to withdraw his resignation. He was not at Megawatt Park yesterday.

"I've got no comment to make at this stage," Maroga told The Star yesterday.

Eskom officials were unable to say when the situation would be clarified.

Sources told The Star that tensions between Maroga and the Eskom board increased to the point that both Maroga and Godsell offered to resign at last week's board meeting.

Maroga has been CEO since February 2007 and an Eskom director since 2002. Godsell has been a director and board chairman since July last year.

Both reportedly recused themselves from the meeting so that the board could discuss the matter, and the board then chose to accept Maroga's resignation.

It's believed that tensions revolved around issues of corporate governance and the board's desire to have a greater involvement in the running of the state-owned business, while Maroga wanted less board involvement. Maroga's competency is apparently not at issue.

At stake are the massive contracts for building new power plants, involving billions of rands.

Eskom has signed the contracts but hasn't yet got all the money in bank, which leaves the board badly exposed if things go wrong.

Eskom is relying heavily on the National Energy Regulator of SA (Nersa) agreeing to its September request to hike the price of electricity by 45 percent each year for the next three years to help fund the new plants.

Last month, Maroga said that if Nersa didn't comply, it could compromise the programme. Even with the increases, Eskom will run up a R63 billion shortfall in the next three years. Nersa's decision is due in February.


It's believed the board is concerned about the substantial amounts of money already committed and consequent huge exposure to risk for the board, so they wanted greater control over the day-to-day management of Eskom.

Maroga may have mistakenly believed that the board would refuse his resignation, as it would be easier to find a new chairman than a CEO.

After Godsell briefed staff, an internal staff memo confirmed Maroga's departure.

"Mr Jacob Maroga has resigned as CEO of Eskom with immediate effect," it said.

"The Eskom board is presently considering who will be acting on his behalf and will inform business in due course. They are also committed to fill his position within 90 days."

Godsell reportedly told staff an interim CEO would be appointed, while a permanent CEO was being sought.

Although Maroga is expected to get a payout from Eskom, he will have to repay his Eskom housing loans, totalling R4.5 million, within 90 days of his resignation

Yesterday, Minister of Public Enterprises Barbara Hogan said she knew of the "apparent breakdown in relations" between the board and Maroga. She dismissed rumours that President Jacob Zuma had interfered.

Cosatu Gauteng chairman Mosanku Phutase Tseki said: "The crisis cannot be a Maroga issue alone."

He said Maroga had defended Eskom against criticisms about African skills and professionalism, and forfeited his bonus last year. Tseki said the price increases could be a way of discrediting Maroga and that his departure would damage transformation at Eskom.

Solidarity spokesman Jaco Kleynhans said: "Maroga simply could not manage the electricity supplier efficiently and even failed to appoint competent executive management to salvage the crisis situation at Eskom."



  • This article was originally published on page 1 of The Star on November 06, 2009

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Showing page 1 of 2 comment pages, 20 total comments
7 Weeks ago Numzane wrote :
It is very easy for white people to squeal AA when CEO is black.Maria Ramos(ex-Transnet boss) is white???Do I hear any AA being bandied.Julius Malema is right. To let whites continue to run things as if this is Europe is out of kilter.They still dream of white utopia.Why can't they just emigrate to Canada or OZ,NZ.The black majority are sick of this attitude.
7 Weeks ago Robr wrote :
Proudly Eish is sprouting absolute Gibberish, I wonder which School of Idiots did he attend???? Look what happened to Transnet, SAA and now Escom. Who were heading up these organizations, DOWN WITH AA !!!!!!!!!!!!
7 Weeks ago Anonymous wrote :
This proves to our people once again our government put inexperience people in top jobs for BEE'S sake.
7 Weeks ago Don wrote :
So why a crisis, good riddance....just don’t put another incompetent in his place (wishful thinking) the AA thing just keeps on butting in now, don’t it.
7 Weeks ago Concerned Citizen of SA wrote :
Hire competent people. Peope that can actually do the job, not political appointments. This is why there's protests. Because of jobs for pals. Decommission the gravy train. What happens when there's a change of President or government, people are again replaced. This causes more problems. Just hire competency and people especially the poor will receive service delivery. Why did Eskom waste all those profits on bonuses etc. Did they not realise our economy is growing. They did not plan for infrastructure or renewable resources now what ? We the consumer must pay. Cut down on ministers expenses, self rich shemes etc. There are far too many ministers for this small country of ours. Use all this wastage on resources and build new power plants. Cancel all those parties. Tell Julius to focus on youth programs/developments/street children. He is making a mockery of what we've fought for all these years. What the hell is he commenting on Eskom / ASA etc. etc. etc. He must focus on the youth issues that are critical, please give him a mandate that entails the youth and their future. If he wants to be a politician then he must run for office, not use the youth to further his own ambitions......
7 Weeks ago Anonymous wrote :
The price of candles is going to rise.
7 Weeks ago Proudly Eish wrote :
Malema's my man for the job. Let him show us all that this thing about technical skills and competency is just a smokescreen created by white supremacists wanting to stay in charge. Malema will expose the millions of electrons that have been carrying power to the people as agents of counter-revolutionary forces that do not recognise the realities of the new South Africa. He will ensure that this negative electricity is transformed into positive electricity in line with ANCYL policy. Viva Julius ! Finally - light at the end of the Eishkom tunnel !!
7 Weeks ago ILoveSA wrote :
Can I get his number now? I need someone to mow my lawn. I'll pay him and Leonard Chuene R300 to do the job.
7 Weeks ago PROUDLY BLACK VOTED FOR ANC wrote :
I SAY GOOD RIDDENCE MA GA HAMBE A TSAMAYE, AS FOR YOU FLOYD SHIBAMBU AND MALEMA WE ARE TIRED OF YOU ANCYL INTEREFERING EVERYWHERE AND THE QUESTION IS WHO IS RULING THIS COUNTRY? OR IT'S BECAUSE TOP BRASS HAVE TENDERS WITH ESKOM, THAT'S WHY MAROGE WAS PUSHED
7 Weeks ago Anonymous wrote :
what is more important the public at large or transformation?? the paying public doesn't care what colour the top guy is he wants good results what about Cronin responsibility?? why are these high level personnel not properly trained why don't they go overseas etc the time of political appointments is over. They must be very good black top executive in SA find them identify the pool of these people. The Minister should know that responsibility start at the top
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