Public Enterprises Minister Barbara Hogan would approach former Eskom chairperson Bobby Godsell over this weekend to ask him to "reconsider" his resignation, she told SAfm on Friday.

Godsell stepped down on Monday November 9, 2009, citing a lack of support from the shareholder, both on the Eskom board's acceptance of Jacob Maroga's resignation, as well as for its attempts at resolving the dispute with the belligerent Eskom CEO.

Hogan acknowledged that there was a period where it might have appeared that the shareholder, which was wary of protracted leadership uncertainty at the vital utility, had not fully supported the board's approach.

"There was a point in the whole negotiation where it did appear that this was going to go on longer than was good for Eskom," Hogan said.

In that context, she admitted, Godsell may have felt he had little choice but to step aside, and "I respect his reasons" for resigning "on principle". But she also indicated that the differences related more to timing than substance.

Godsell's resignation appeared to up the ante in securing a more unified position between the shareholder and the board and Hogan was, thus, hopeful that Godsell would be in a position to reconsider.

When contacted by Engineering News Online on Thursday, Godsell said that he could not comment whether he had been approached to return as chairperson, nor whether he would consider such a return.

Acting Eskom executive chairperson Mpho Makawana said on Thursday that it was the now prerogative of the shareholder to approach Godsell to assess whether he would reconsider his resignation.

It was not clear whether, if Godsell returned, he would take over the executive chairpersonship currently occupied by Makwana, or another solution would be sought.

"All of us would like to see Eskom in good hands and Bobby Godsell certainly would be a very good chair," Hogan said, adding that she would be approaching him over the weekend.

BOARDS IN CHARGE

Hogan has also reinforced the position that State-owned enterprise (SoE) boards would remain in place and have governance authority.

She received support on Friday from President Jacob Zuma, who, writing on the African National Congress' website, stressed that: "We will not delve into what happens in the boardrooms of the SoEs, as that is a matter of the boards that run those institutions".

Zuma added that, as shareholder, the government appointed a board which worked with the Minister responsible, who provided political leadership to the entities.

"We have full confidence in the boards and the Minister and trust them to run the institutions in the interests of both the government and the people of South Africa," Zuma wrote.

This came after the public enterprises portfolio committee chairperson, Vytjie Mentor, called for a review, or even the scrapping, of the SoE boards - a call which apparently angered many in government.

In an address to Parliament on Thursday, Hogan expressed her support for the board and its actions. She also stressed that, despite considerable pressure, she refused to override the principles of good corporate governance and impose a CEO on the board, without authority in law.

"Let me say upfront, that this government is completely committed to abiding by the principles of proper corporate governance in all of our relationships with the SoE," she averred, adding that the integrity of the board was "paramount".

"If there are any concerns about governance of parastatals in the country, let me assure everyone in the House that this Ministry and the boards of SoEs have the full authority to govern their companies without unlawful or inappropriate interference - we say to them: 'hell yes, you must govern'."

Engineering News Online understands that a process had been initiated within government to align the Public Finance Management Act, with the new Companies Act and the new benchmark for good corporate governance, King III. Such alignment would seek to entrench the legal standing of boards as the key governance structures at the SoEs.

Such a development should also close the perceived space for political lobbying around board and executive appointments at State companies.