Guiding consumers since 2009

How Brian Molefe’s replacement might be no better

By Jessica Anne Wood

CEO of Eskom Brian Molefe announced his resignation this afternoon. This follows allegations made against him in the Public Protector report on State Capture. As a state owned enterprise (SOE), Eskom is managed using taxpayers’ money. That means that you and I are responsible for funding the power utility and paying its staff.

As with many of the other SOEs in South Africa, Eskom has been fraught with corruption and wasteful expenditure scandals. However, Molefe was brought in to try and make the power utility profitable once again.

According to Peter Attard Montalto, a research analyst at Nomura, Molefe had no credibility left following the Public Protector’s report, regardless of the credibility behind the allegations

“Brian is the fallen angel for investors coming out of Transnet as a hero and now implicated in alleged grand corruption and rent extraction by the PP report. In a way it’s sad, in a way it’s not. He ultimately was successful because he could navigate the patronage realities of the ANC but it has caught up with him.

“We need to understand however that the rot in Eskom goes much deeper - the whole board needs to be replaced and there are many others there also implicated in the PP report,” said Montalto.

Furthermore, Montalto expects a similar person to be appointed as the new Eskom CEO. “I do not see this as a positive. They will appoint someone equally as willing to facilitate rent extraction and ensure nuclear success and as long as the board is in place and other senior management nothing changes. If the CFO is appointed CEO that is not positive and would be a sign of status quo.”

Molefe will leave Eskom as of 1 January 2017.

Recent Articles

Featured Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide