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Zuma tried to break Eskom deadlock — Hogan

12th November 2009

By: Sapa

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Public Enterprises Minister Barbara Hogan confirmed on Thursday that the presidency tried to resolve the dispute at Eskom over CEO Jacob Maroga's resignation.

"At a certain stage, the President's office offered its assistance to break the deadlock and the board was approached to delay its processes in a final attempt to resolve the matter," she told the National Assembly.

Hogan said she and her deputy, Enoch Godongwana, worked "tirelessly" behind the scenes to find an amicable settlement to the standoff between the board and Maroga.

Hogan regretted that the row became a "racial football" and said she stood firm against "vociferous" pressure to override the board and reinstate Maroga.

He received massive public support from the African National Congress Youth League, the National Union of Metalworkers of South Africa and the Black Management Forum, which charged that parastatals had become "slaughterhouses" for black CEOs.

Without naming any of the groups, Hogan berated those who launched "political crusades" to save Maroga.

"We tried to pursue options of facilitation, mediation and arbitration, even a negotiated settlement. During this period, a demand arose.

"As we were to discover, the subtext of this demand was in actual fact a demand that I, as minister, override the board and confirm a person in his position against the wishes of the board and all principles of corporate governance."

Hogan paid tribute to former Eskom chairperson Bobby Godsell, who quit on Monday citing a lack of support for the board's decision to accept Maroga's resignation.

"I want to thank Mr Godsell for his exemplary leadership in the last 15 months."

Maroga, who offered to quit then tried to withdraw his resignation, tried to return to work this week but Hogan confirmed that he was no longer the CEO.

"Mr Maroga is no longer the CEO of Eskom. The search for a new CEO will now commence."

She said in the wake of the "turbulent time" at Eskom, she wanted to ensure the boards of parastatals that they had full authority to govern their companies without unlawful or inappropriate interference.

"We say to them: Hell, yes, you must govern," she said.

 

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