Cape Town – Former Eskom board chairperson Malegapuru Makgoba has reportedly accused Public Enterprises Minister Pravin Gordhan of interfering in state-owned enterprises (SOEs) in his latest book, “Leadership for Transformation“.
According to The Citizen, Makgoba expressed concern about the interference and micromanagement of politicians in the Eskom system.
EWN reported the book also claimed Gordhan did not know how to distinguish between politics and governing SOEs.
But in a radio interview on 702 last month, Gordhan denied interference and stressed the need for Eskom to follow protocol and its memorandum of incorporation when selecting a new permanent CEO.
“I reject both those allusions because today it’s popular to find a scapegoat to explain why things happen or don’t actually happen. So, I reject both those ideas,” he said during the interview.
Gordhan said that businesses typically have a document known as the memorandum of incorporation (MOI). This document, he said, outlines the scope of actions a company is permitted or prohibited from taking.
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“Companies have a document, let’s call it the constitution of a company, which is called a memorandum of incorporation.
“This tells the company what it can and can’t do and very clearly. Within the state entities, such as Eskom, boards are supposed to identify three individuals and three names need to be submitted. We were confronted with the violation of the MOI by the submission of one name. It had to be referred back to the board. I have not interfered. This is a formal, legal process that needs to be followed and the board understands what it has to do,” he said.
Eskom has been facing a leadership crisis since the departure of its former CEO in February, and the board chairperson also resigned recently. Gordhan announced a new appointment to the board chairperson position.
Meanwhile, calls are growing for President Cyril Ramaphosa to step in and address the leadership crisis in key state-owned enterprises (SOEs) as they face a series of resignations, EWN said in a different report.
The recent departure of Eskom’s board chairperson, Mpho Makwana, along with leadership changes at Transnet, including the resignations of the group CEO and CFO, have raised concerns about the potential economic impact.
Analysts argue that Ramaphosa must take a more active role in addressing the governance crisis within these SOEs, ensuring the appointment of competent leaders who can implement turnaround strategies without political interference, the report said.
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Compiled by Betha Madhomu
