South Africa: Eskom CEO de Ruyter Accused of Nepotism, Irregular Decision-Making and Contract Manipulation

Google+ Pinterest LinkedIn Tumblr +
  • Eskomโ€™s suspended chief procurement officer (CPO), Solly Tshitangano, has accused Eskom CEO Andrรฉ de Ruyter, of nepotism, irregular decision-making and contract manipulation.
  • The allegation were made known yesterday at a meeting of Parliamentโ€™s Standing Committee on Public Accounts (SCOPA).
  • SCOPA has decided the allegations are serious enough to investigate and will hear evidence from Mr Tshitangano in person.
  • The jury is out on whether the move on the part of Mr Tshitangano is a push back against de Ruyterโ€™s efforts to clean up the corruption riddled state owned energy utility, or does the suspended chief of procurement have a genuine case?ย 

Eskom responds

“procurement at Eskom has long been an area of particular concern to the Board of Eskom, as it is an area associated with state capture. Savings expected from procurement have failed to materialise, and as hearings at SCOPA have repeatedly evidenced, compliance with National Treasury requirements have not met the expectations of the Board with regard to good governance.”

Eskom adds that โ€œThe Board has therefore encouraged and instructed the executive management of Eskom, including the Group Chief Executive, Andrรฉ de Ruyter, to pay particular attention to the procurement function to effect the required change, and deliver the expected savings. Progress in this regard has been slower than the Board would have liked to see, at least in part due to leadership lacunae in the procurement function.โ€

โ€œThe Board of Eskom affirms its support and confidence in the executive management of the company in instilling a high performance culture, including the application of appropriate consequence management in accordance with Eskomโ€™s internal disciplinary processes. The Board has complete faith in the companyโ€™s internal processes and governance procedures to deliver a fair process and outcome on the matter of the suspended Chief Procurement Officer.โ€

Eskom rubbishes claims and makes a warning

โ€œUnfortunately, over the past few weeks a number of allegations have been put in the public domain and in the media, which, on the face of it, seek to influence internal operational and good governance processes by exerting pressure through structures outside of Eskom.

These allegations and the accompanying unwarranted attacks on Eskomโ€™s management team have the potential effect of distracting management from the critical role of restoring Eskom to operational effectiveness and financial stability.โ€

Author: Bryan Groenendaal

Share.

Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Copyright Green Building Africa 2024.