You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Scopa gives Eskom 90 days to complete inquiry into CEO

Has called off its own investigation into De Ruyter.
The utility needs to wrap up its investigation into Andre de Ruyter by July 6. Image: Moneyweb

Parliament’s Standing Committee on Public Accounts (Scopa) has given Eskom 90 days to complete its investigation into allegations of racism and abuse of power levelled against its CEO, Andre de Ruyter.

The public finance watchdog will thereafter request that the Eskom board report on its findings to the committee.

Moneyweb Insider INSIDERGOLD

Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.

Choose an option:

R63 per month
R630 per year SAVE R126

You will be redirected to a checkout page.
To view all features and options, click here.

A monthly subscription is charged pro rata, based on the day of purchase. This is non-refundable and includes a R5 once-off sign-up fee.
A yearly subscription is refundable within 14 days of purchase and includes a 365-day membership.

Click here for more information.

Read: Racist CEO? Eskom launches probe to find out

Eskom earlier this month said that it had appointed Advocate Ishmael Semenya to lead the investigation, adding that Semenya would be given “space to conduct the investigation unhindered.”

On Wednesday, Scopa decided to call off its own investigations into allegations of impropriety against De Ruyter as well as allegations of irregularities related to procurement and contract management at the state-owned entity.

Request from minister

Scopa chair Mkhuleko Hlengwa said Public Enterprises Minister Pravin Gordhan sent a letter to the committee requesting that it suspend its inquiry into the power utility because Eskom had launched a similar inquiry.

Although the committee agreed to halt its inquiry into Eskom and De Ruyter to avoid a duplication of effort, committee members slammed Eskom for instituting its inquiry into De Ruyter shortly after Scopa had announced that it would launch an investigation into the CEO.

“I can only hope that this is not a malicious compliance by Eskom and that the work will be done thoroughly and that it will not resemble the investigation into the COO which took 11 days and came out with a conclusion that is less than desired,” said Hlengwa.

The inquiry follows accusations made by suspended Eskom chief procurement officer (CPO) Solly Tshitangano that De Ruyter spearheaded irregularities related to recruitment, performance management, procurement and governance processes at Eskom.

Tshitangano’s letter to Scopa further alleges that the Eskom board was made aware of the alleged impropriety by De Ruyter as far back as February last year.

Deviations

Scopa had also planned to investigate applications made to National Treasury by Eskom to be permitted to deviate from the standard procurement process in the first two quarters of 2020.

The deviations, the majority of which were for the renegotiation of coal supply, resulted in the beleaguered power utility losing R20 billion in revenue.

The committee decided to await the outcome of Eskom’s investigation before deciding whether or not it will launch its own investigation into these allegations

Read: Auditor-General continues to push for accountability

Hlengwa accused Eskom of “jumping the gun” by pre-empting the Scopa investigation and launching an investigation of its own. He said Eskom knew of the allegations levelled against its CEO for 14 months yet did not launch any investigations into “issues which require attention”.

“It is completely unacceptable for government departments and entities to sit on a matter.”

He added that as one of the country’s critical state-owned entities, it is undesirable for the CEO and CPO of Eskom to be fighting as this has material consequences on the operations of the entity.

“The bottom line is that all is not well at the moment and the problems are huge,” he said.

“We had rolling load shedding since 2008, Medupi and Kusile are still not complete, there’s issues with coal supply, there’s issues with contract management – and instead of the situation improving it keeps worsening.”

Please consider contributing as little as R20 in appreciation of our quality independent financial journalism.

AUTHOR PROFILE

COMMENTS   15

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

How about Scopa investigate all the other SOE’s? Is it because De Ruyter is white?

The main reason is that Andre de Ruyter has been too good at cutting off corruption monies being spent by Eskom and this has ‘hurt’ the ANC and EFF cadres that are benefitting from this rampant corruption.

The EFF and ANC’s SCOPA call for investigation into racism is a red herring.

False claims of racism is the last card they have to play and sadly it is a massively overplayed card.

Not only are the corrupt ANC and EFF having their funds curtailed but they are looking for relevance in a world where they have none. So they play the race card to death.

This allegation conveniently lines up with the Econ oil contract enquiry (another top story today). Where Eskom overpaid R 1.2 billion over 5 years, and Econ paid contributions to the ANC. As the CPO of Eskom, on who’s head will the axe fall for the illegitimate contract worth billions?

Sounds like it. SOE’s are run by corruption not good CEO’s

What happens to the complainant, the chief procurement officer, if the investigation determines that the allegations are bereft of substance and Mr de Ruyter is exonerated.

Let me guess-a senior role in the ANC or EFF!

There was always nothing to see that is wrong with what Eskom Chief Executive Officer, Mr. Andre de Ruyter was doing, and likely there is nothing to ‘uncover’. What I always believed was happening, starting with cries of ‘oh, now you are appointing white people over us’, to include the loud but faceless claims and accusations of racism against him, was nothing but a front to protect the interests of those who he was likely stepping over their ‘tender’ interests and other economic interests, like those people who are on the salary but never show up at the office and are out spending on the corporate card and hosting endless meetings at all sorts of fancy places around the country. Don’t even talk about the bloated parastatal, full to the brim with with personal and political patronage. Remove the cloud over Mr. de Ruyter and let him do the work he was hired to do. Investigate those who instituted this ridiculous ‘invest-in-gation’.

Nowadays if you just do your work, can make you a racist overnight, and you can do nothing about it. Somebody just make his opinion about you public, and it can be the end of your career.

The definition of a racist in SA is anybody who blows the whistle on the incompetence or dishonesty of somebody who’s of the “correct” shade.

Well, well, well, 90 days and the task must be done, but it took the same parliament 15+ years to discover that eskom was running out of steam or (is it electricity).

with eskom set aside: keep in mind that criticism is not racism – criticism or a different opinion can have a positive effect if the parties involved are willing to listen to each other’s opinions and understands out of which angle each other is looking at a problem iso creating a race issue that never actually existed

Now if only allegations of fraud and corruption were pursued with such diligence by Scopa and allied parliamentary committees. Abuse of taxpayers ‘ money is clearly not as as serious as racism.

Ey, this thing can backfire so badly. Not for de Ruyter.
It actually looks like a trap.

Not surprised by this at all. They’re searching for any excuse under the sun to get rid of him. No wonder this country is going backwards.

Eskom doesn’t like it if you are not corrupt Andre. Get with the program. I haven’t heard eskom say anything about any other ceo before.

Right there is the SA problem…90 days to investigate the man, for crying out loud. SCOPA should investigate itself as to why they believe it is necessary to give 90 days for this investigation.

Indeed, Oubok, the culture of “the sun she comes up, and the sun she goes down” is one of the major economic downfall’s of SA, along with breeding! Time doesn’t equate to money here in the sun!But everybody wants more of both! Culture is standing in the way of progress!

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: