Eskom to take action against suspended CEO Koko

The announcement comes a week after it postponed the initial announcement.

Matshela Koko. Picture:

JOHANNESBURG - Eskom has announced it will be pursuing disciplinary action against suspended acting CEO Matshela Koko.

Koko has been accused of awarding a lucrative contract to a company in which his stepdaughter was a director.

Eskom's interim chairperson Zethembe Khoza has announced that the utility will be taking disciplinary action against Koko following the finalization of an investigation into his conduct.

Khoza says the utility has also noted and addressed issues raised by their auditors.

He says Eskom has performed better than expected financially.

Revenue has increased to R177 billon, R20 billion has been achieved in cost savings and more than half of the funding for 2018 has already been secured.

The announcement on Koko was made during the utility's release of its annual results which comes a week after it postponed the initial announcement.

The postponement came on the back of reports that Koko could face disciplinary charges over irregularities at the utility.

WATCH: Eskom announces annual results

It was also reported this week that Eskom is sitting on its last R20 billion and still wants to pay bonuses to axed CEO Brian Molefe and suspended acting CEO Matshela Koko.CEO Matshela Koko.

But the power utility maintains it’s not cash-strapped and will be able to continue operations and paying salaries.

Public Enterprises Minister Lynne Brown has asked the interim board to conduct short-term investigations into corruption and report back to her, saying that she’s skeptical about the utility's truthfulness.

Brown says allegations of corruption and maladministration have damaged the integrity of Eskom but admits that investigations are still underway and none of the claims have been tested in court.

However, Brown made it clear that she’s had reason to question the veracity of some of the answers she’s been given by Eskom.

“I, therefore, instituted various measures including changing the board. I have also asked the new interim board of Eskom to conduct short-term investigations.”

Additional reporting by Thando Kubheka & Ilze-Marie Le Roux.