Scopa raring to take action against corruption-riddled SOE culprits

The standing committee on public accounts wants action to be taken against those implicated in corruption in state-owned enterprises (SOEs), including Eskom. Chairman of Scopa Themba Godi said on Sunday he had not seen the National Treasury report into Eskom, implicating its former and current top officials with the Guptas, but his committee would discuss it. It was reported on Sunday that the National Treasury had called for action against former Eskom chief executive Brian Molefe, his successor Matshela Koko and other officials over coal contracts with the Guptas. Tegeta, a Gupta-owned company, was given coal contracts by Eskom but the contracts have been questioned.

The National Treasury report comes after PricewaterhouseCoopers gave Scopa a damning report into the same contracts, worth R4 billion. Eskom was grilled in Parliament by Scopa over the PwC report a few months ago. Scopa has been asking for the Treasury report since last November, but it had not been finalised. Godi said he has not seen the report, but the management committee of Scopa will meet tomorrow to discuss its programme, which will look at issues to be prioritised. However, he would not say when the Treasury report will be discussed by the committee. “All I can confirm is that I have not seen that report. I can confirm that it's a report we have asked for from the National Treasury,” he said. He said Scopa welcomed the suspension of Eskom chief financial officer Anoj Singh. His suspension came after Molefe left and former board chairman Ben Ngubane also quit. Molefe is challenging his removal from Eskom in court.

Koko is facing disciplinary action related to his stepdaughter's contract with the power utility. Godi said Scopa wants action on all those implicated in allegations of wrongdoing. He said the suspensions and the departure of people showed there were serious problems at Eskom. “What is clear is that there are serious governance issues in our SOEs. We are happy Eskom has shone the light in that dark corner,” said Godi. “When Eskom announced the financial results last week we welcomed the statement of the interim chairperson, Zethembe Khoza, that they will do the investigation,” he said. “The only concern we have, while we welcome the investigation into the CFO and to take disciplinary action against Koko, the only thing is that they acted under pressure," said Godi. “It’s like their hand was forced. We hope their investigation will be fair, thorough and transparent,” said Godi.

This followed reports that the banks had threatened to recall loans worth billions of rand from Eskom if it did not act against Singh on allegations of his dealings with the Guptas. The Development Bank of Southern Africa had threatened to recall its R15bn loan unless there was action. There was fear other banks might follow suit and threaten the R350bn loan book of Eskom.