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South African Energy Forum (SAEF) notes with grave concern the timeous evasion of responsibility and accountability of the Board of Eskom to account to SCOPA Oversight ever since this Board was put in place in year 2018. This Board was given a mandate to rescue Eskom from the financial losses abyss as there had been no loadshedding in the preceding three years before this Eskom Board was appointed.

1. Year 2019: It was Former Eskom Board Member Ms Nelisiwe Magubane in 2019 SCOPA Eskom Oversight whom the then Chair of SCOPA accused of not even being able to talk to her own Eskom Report Document presented to SCOPA back then. Eskom Board was found part timing on their job.

2. Years 2020 and 2021: There seemed to have been a deafening silence on Eskom to be held to account to SCOPA for the persistent loadshedding in years 2020 and 2021. SCOPA did good work by revealing that the Eskom Board had been pretending not to be aware of a plus/minus R 4 Billion that had been paid to an Eskom Contractor by mistake. It took SCOPA (not the Eskom Board) to point out this gross financial dealing and money laundering that happened under the Eskom Board. *To Date: That R 4 Billion remains unpaid.* The National Prosecuting Authority (NPA), Special Investigation Unit (SIU), South African Courts, Department of Public Enterprises (DPE) Minister Pravin Gordhan, The President of the Republic Cyril Ramaphosa and indeed the current Eskom Board are all quite on the recovery of that R 4 Billion that Eskom conveniently overpaid to a Contractor. *Eskom Board was surprisingly not aware of until it took SCOPA to point it out.* The solution to this is easy: The listed organ bodies must recover this R 4 Billion or just come out tell the Nation that the untouchables were and are involved therefore this R 4 Billion owed to Eskom will not be paid back to Eskom!

3. Eskom Board Dragging its Feet to Account and Recover Billions Stolen from Eskom:

3.1. The R 4 Billion mistakenly paid to Eskom Contractor as stated in 2 above.

3.2. About R 3.5 Billion Insurance Payout for Duvha Unit 3 Boiler: The Eskom Board is quite on what happened to R 3.5 Billion Insurance Payout for the 550 MWe Duvha Unit 3 Boiler that was supposed to be returned to service since year 2016. *No trace of this R 3.5 Billion Insurance Payout!*

3.3. Both Eskom Board and the NPA/SIU are dragging their feet to recover what the SIU estimated to be R 178 Billion that was stolen by 79 Contractors on Medupi and Kusile Power Stations Contracts.

3.4. A Total of: R 185.5 Billion that this current Eskom Board is turning a blind eye on to recover from the thieves* and it is not clear if this Eskom Board is doing anything to assist the NPA. SIU and The HAWKS to expedite the recovery of this much needed R 185.5 Billion.

3.5. The Review and Renegotiation of the 40 Years Cost Plus Mines (Coal) Contracts and the 64 Independent Power Producers (IPP) Contracts of the Bid Window 1 to 3 of the DOE IPP Office. It has become clear that the current Eskom Board is prioritising continuing to pay these hugely expensive contracts even when Eskom and National Treasury have the law and contractual clauses on their side to renegotiate down these highly unaffordable contracts.

4. Years 2020, 2021 and 2022: Unjust Loadshedding:* The current Eskom Board have unjustifiably, if not fraudulently subjected the Nation (South Africans and Business) into a completely unnecessary loadshedding. The basic thing to do is to have the Eskom Board presenting to SCOPA: *A Report of every Eskom Power Station Manager giving factual details why their Power Stations are having multiple breakdowns, what exactly is required to decisively deal with those multiple breakdowns and if the Eskom Board has supported them (i.e., all 15 Eskom Power Stations Managers) with the necessary tools and requirements to stop the loadshedding for good. The Power Station Managers are the best people to explain to the nation why is Eskom subjecting the country to what appears to be an unjust loadshedding. It’s time the Eskom Board stops shielding the men and women (i.e., Power Station Managers) who are supposed to stop loadshedding.*

5. Year 2022: The Eskom Non-Executive Director Eskom Board Member (Ms Busi Mavuso) versus SCOPA Chairperson (Mr Mkhuleko Hlengwa) Debacle on the 21 April 2022 SCOPA Oversight Meeting:

5.1.  It is well-known that the current Eskom Board is unable to arrest the persistent loadshedding that is crippling the country.

5.2.  Ms Busi Mavuso is a non-executive director, meaning that she is not at Eskom all the time. The last thing South Africans need is to have a person that is NOT PERMANENTLY BASED on the job at Eskom REPORTING to SCOPA ON BEHALF OF THOSE THAT ARE PERMANENTLY THERE.

5.3.  It is quite unfortunate that Ms Busi Mavuso seemed to try to avoid giving answers to SCOPA Chairperson by siting “they as Eskom Board must not be made the fall guy. This is the ANC Led Government Mess”.

5.4.  Perhaps Ms Busi Mavuso had a point in trying to give answers to the SCOPA Chairperson by referring to historical background of how Eskom got to this bad situation. Perhaps the current Eskom Board is frustrated by the ANC Led Government not supporting the Board to execute its duties.

5.5.  What gives comfort is that Ms Busi Mavuso shows that she is willing to address the real core problem of why Eskom Board is unable to abate and arrest the persistent loadshedding and unable to turn around its business to be self-sufficient.

5.6.  This then begs that a request be made for Ms Busi Mavuso and the Eskom Board be given a fresh opportunity to unpack how is the ANC Leg Government really standing in the way of the Eskom Board to execute its duties.

6. Concluding Remark/s and Request:

6.1.  SAEF and its Allies are aware of the impediment that Ms Busi Mavuso might have wanted to allude to by stating that the Eskom Board Failure is the creation of the ANC Led Government Mess. That impediment could well be the PFMA Section 63 (2) that states: *“The executive authority (DPE Minister) responsible for a public authority under the ownership and control of the National or Provincial Executive MUST exercise that executive’s ownership control powers to ensure that that public entity complies with this Act and the financial POLICIES of that Executive”.* This effectively means the DPE Minister is where the buck stops and NOT with the BOARD. *This means DPE Minister Pravin Gordhan is running Eskom remotely or in absentia, thus giving credence to Ms Busi Mavuso frustrations that the Eskom Crisis is an ANC Led Government Mess.*

6.2.  It is therefore on the basis of all points raised in this Request Statement that SAEF and its Allies kindly request Chair of SCOPA and DPE Minister to not rob the people of South Africa by allowing Ms Busi Mavuso and her Eskom Board, especially Group CEO Mr Andre de Ruyter, Group Chief Operating Officer (COO) Mr Jan Oberholzer and Group Chief Financial Officer (CFO) Mr Calib Cassim to stop hiding behind a part-time non- executive Director Board Member Mr Busi Mavuso.

6.3.  All Three Men: Mr De Ruyter. Mr Oberholzer and Mr Cassim must explain to South Africans why the Eskom Board is unable to attend to the outstanding tasks stated in points 3.1 to 3.5 above.

6.4.  Furthermore, The Three Men are kindly requested to Request ALL Eskom Power Station Manager to avail themselves to SCOPA to explain to South Africans why Eskom unable to stop loadshedding.

6.5.  Once All: Eskom GCEO, GCOO, GCFO and All 15 Eskom Power Stations Managers have explained why Eskom is unable to stop loadshedding and why monies owed to Eskom as per points 3.1 to 3.5. are not recovered, only then SCOPA Chair should afford Eskom Non-Executive Director Board Member Mr Busi Mavuso and her Eskom Board Colleagues to explain her frustrations of why she feels that the Eskom Crisis is a creation of the ANC Led Government.

Issued by Hlathi ‘Zakhele’ Madela – Executive Director, South African Energy Forum (SAEF)