Concerns raised over investor reaction to reinstatement of top Eskom execs
Koko was accused of awarding contracts to a company linked to his stepdaughter while Govender faced charges for allegedly playing a role in the Trillian debacle.
JOHANNESBURG - Concerns have been raised about how investors will react to Eskom’s decision to reinstate two executives who had been suspended on serious charges last year.
The power utility announced on Wednesday that Matshela Koko and Prish Govender were reinstated after being cleared of any wrongdoing while the Democratic Alliance (DA) is pursuing criminal charges against Koko for misconduct.
Koko was accused of awarding contracts to a company linked to his stepdaughter, while Govender faced charges for allegedly playing a role in the Trillian debacle.
The Democratic Alliance's Natasha Mazzone says that the reinstatement of Koko and Govender was kept under the radar, raising further concerns about corporate governance at the state-owned utility.
“The entire board at Eskom is highly compromised. The fact that this memorandum was leaked shows that Eskom had absolutely no intention of informing the public that the two have been reinstated.”
Energy expert Chris Yelland says investors are still to react to the news.
“An important point is the reaction of the lenders and the financial community to this ongoing, poor governance or absence of governance and complete mismanagement at Eskom.”
While Koko and Govender will return to work, they will still have to answer to a parliamentary inquiry, face possible criminal charges and a state capture investigation.