Deputy Speaker, overseas media have widely publicised the resignation of Bobby Godsell as chairman of Eskom. Analyst Adam Habib commented that the latest developments at Eskom were a complete disaster and that it was particularly worrying, as they served to put Eskom under the microscope. On top of that, the insistence by the ANC Youth League that Eskom CEO, Mr Maroga, had not resigned and that Godsell was a racist who wanted to get rid of the CEO, left an indelible impression of unacceptable interference by the governing party in the affairs of the parastatals. Investors have long memories about such matters. We have seen similar incidents at the SABC, Transnet, Athletics SA and the list goes on.
In the view of most observers it seems as if the board of Eskom was certainly overruled by a higher authority, possibly even by the President of the Republic. Economist Chris Hart asserted that the authority of the board has been undermined and that co-operate governance at Eskom was very badly affected as a result of the crisis. Not unsurprising, the racist slurs against Godsell are being rejected by the National Union of Mine Workers, which defended his nonracial credentials. The union also raised its concern about the apparent breeches of the principles of good governance at a state-owned enterprise.
Political intervention by government, which puts a board under duress to act differently from the way it seems appropriate, will hopelessly politicise these enterprises and precipitate their destruction. Eskom is on a slippery road and this government must assume a very large share of the blame. Cope regrets what happened at Eskom over the past few weeks and we particularly regret the loss of Godsell at Eskom.