Business Leadership South Africa (BLSA) has suspended Eskom and Transnet’s memberships with immediate effect, over “extensive allegations of corrupt behaviour”.<\/p>\n
In a statement issued on Thursday, BLSA said that the forum had been in constant engagement with both state companies over the allegations, and have been “left wanting”.<\/p>\n
“South Africans have been rightly disturbed in recent times at the numerous allegations of corrupt behaviour and colossal failures of corporate governance and accountability at both Eskom and Transnet,” it said.<\/p>\n
“Neither of the SOEs were able to give BLSA comfort that they appreciated the seriousness of the issues at hand\u201a or that they had the requisite will and purpose to put their houses in order. This left BLSA with no choice but to suspend their memberships from the organisation.<\/p>\n
“We have to live by our values and will take a zero-tolerance approach to any organisation found in breach,” it said.<\/p>\n
Pointing to Eskom in particular, the group said that the country’s national electricity is a strategic asset, and due to multiple governance and operational failures, and a stretched balance sheet, now presents a systemic risk to the economy as a whole.<\/p>\n
“Until and unless a non-conflicted, experiences and permanent chairman and board are appointed – who in turn appoint an experiences and honest executive team – Eskom will loom large over the economy as a threat to stability and economic growth,” BLSA said.<\/p>\n
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Eskom and Transnet have been implicated in high-level corruption in recent months, particularly surrounding contracts with businesses linked to the Gupta family worth billions.<\/p>\n
BLSA is an independent association whose members include the leaders of some of South Africa\u2019s biggest and most well-known organisations.<\/p>\n
The forum allows South Africa\u2019s business leaders engage key players in South African society, including civil society and labour, to exchange ideas in the national interest, and to create effective dialogue with government and other stakeholders.<\/p>\n