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Maroga will not be reinstated as Eskom CEO — court

3rd May 2010

By: Sapa

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Former Eskom CEO Jacob Maroga would not be reinstated to his position even though his termination was found to be illegal by the High Court in Johannesburg, the Sunday Independent reported.

 

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Judge Moroa Tsoka said that the relationship between Maroga and the power utility's board had irretrievably broken down, and that he could not be reinstated as Eskom's CEO or prevent the board from appointing a successor.

 

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The Eskom board fired Maroga in November 2009 after he denied that he had offered to resign from the public utility.

 


"This, in my view, is unlawful termination of Mr Maroga's employment contract," said Tsoka in his judgement.

 

Tsoka found that Maroga had not been allowed to respond to allegations of poor performance, a right that was detailed in his contract.

 


"In fact, the evidence on record reveals that the two acts of poor performance, namely failure to produce a funding model to save Eskom money and to renegotiate Eskom's long-term contracts, cannot be true as, at the end of December 2009, Eskom [had] saved R10bn due to Mr Maroga's actions," read the judgement.

 


"With regards to Mr Maroga's alleged failure to renegotiate the long-term contracts, there was no certainty that this would be acceptable to other parties. In any event, it is common cause that this would be a costly exercise."

 


Further, Tsoka said that it was in the public interest and good corporate governance for there to be certainty over the leadership of Eskom, the newspaper reported.

 

 

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