Molefe simply had no credibility left: analyst
Eskom CEO Brian Molefe was just the first head to roll following the Public Protector report into state capture – though it’s not a good thing, nor does it solve the deeply rooted rot at the power utility.
This is according to Nomura market analyst, Peter Attard Montalto, commenting on the announcement by Molefe that he has resigned from the role CEO, and will step down effective 1 January 2017.
According to Attard Montalto, Molefe is the “fallen angel” for investors, coming out of Transnet as a hero, and now implicated in grand corruption and rent extraction within the Public Protector report.
“Put simply, he had no credibility left after the report – regardless of the allegations being proven or not,” the analyst said.
“In a way it’s sad, in a way its not. He ultimately was successful because he could navigate the patronage realities of the ANC, but it has caught up with him.
“We need to understand, however, that the rot in Eskom goes much deeper – the whole board needs to be replaced and there are many others there also implicated in the PP report.”
In his statement, Molefe said that the accusation laid against him – that he was ‘captured’ by the Gupta family, and had helped their mining business extract almost R1 billion from National Treasury to further their goals – was not true.
He maintained that the Public protector report had unfairly painted him as corrupt, without giving him the chance to respond.
Read: Eskom CEO Brian Molefe resigns
Nevertheless, Attard Montalto said that the move, overall, is not being seen as a positive one.
“Eskom will appoint someone equally as willing to facilitate rent extraction and ensure nuclear success – and as long as the board is in place, as well as other senior management, nothing changes.”
According to Attard Montalto, if the Eskom CFO is appointed as CEO, it would not be a positive move, and would be a sign of Eskom maintaining the status quo.
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