Eskom SOC Holdings Ltd. said auditors have raised concerns about issues relating to Matshela Koko and Brian Molefe, who both ran South Africa\u2019s state-run power utility this year, in their year-end review.<\/p>\n
The company\u2019s external auditors reported two irregularities to the Independent Regulatory Board of Auditors, Eskom spokesman Khulu Phasiwe said in an e-mailed statement Monday.<\/p>\n
The first was Eskom\u2019s relationship with Impulse International, which received contracts from the power provider while Koko\u2019s stepdaughter was a non-executive director. The second related to the reinstatement of Molefe as chief executive officer in May. He was removed three weeks later and a legal case is ongoing.<\/p>\n
Eskom had 30 days to report back to the IRBA to state whether the issues had been fixed or not. The \u201creportable irregularities\u201d were stated by Eskom\u2019s auditor, SizweNtsalubaGobodo, as being \u201ccontinuing,\u201d the IRBA said by email. They are being processed and will be forwarded on to the Companies and Intellectual Property Commission, the auditor-general and the Department of Public Enterprises, it said.<\/p>\n
\u201cEskom\u2019s board has taken adequate steps to the satisfaction of the auditors that the irregularities were no longer continuing,\u201d the power utility said. \u201cIn Mr. Molefe\u2019s matter, it was noted that the irregularity could only be closed out when the court proceeding had been concluded.\u201d<\/p>\n
Graft Ombudsman<\/strong><\/p>\n Some of Eskom\u2019s top leaders, including Molefe and Koko, were identified in a report by the graft ombudsman last year suggesting the company gave preferential treatment to members of the Gupta family, who are friends of President Jacob Zuma, by awarding coal-supply contracts and helping them buy Optimum Coal Holdings Ltd.<\/p>\n Chairman Ben Ngubane quit last month and Public Enterprises Minister Lynne Brown named four interim members to the board. Johnny Dladla, formerly head of Eskom\u2019s enterprises unit, was appointed acting CEO on June 22.<\/p>\n SizweNtsalubaGobodo also flagged two irregularities at Transnet SOC Ltd., South Africa\u2019s state-run ports and rail operator. One was reported as continuing while the other was not, the IRBA said. The relevant authorities including the police will be notified, it said.<\/p>\n \u201cThe IRBA cannot comment publicly on the nature of the reportable irregularities,\u201d it said.<\/p>\n
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