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The Portfolio Committee on Public Enterprises resumed its inquiry on Eskom on Wednesday, into the mismanagement of state funds in state-owned enterprises.

Former Eskom Acting CEO and head of Generation, Mr Matshela Koko, gave testimony before the Committee.

In his testimony, Mr Koko refuted the evidence that was presented by suspended head of Legal at Eskom, Ms Suzanne Daniels. Mr Koko said she had met Ms Daniels at Melrose Arch to discuss his suspension and get legal advice on the matter. Mr Koko said he did not introduce Ms Daniels to Mr Salim Essa. Mr Koko rejected allegations made before the Committee by Ms Daniels.

The evidence leader of the inquiry, Adv Ntuthuzelo Vanara, told Mr Koko that he should expect his denial to be contradicted by other witnesses. "At the end of this meeting, there will be two witnesses who place you at Melrose Arch in the presence of Mr Salim Essa." The other witness who would place Mr Koko at the meeting is suspended senior executive, Mr Abram Masango.

Regarding the Carte Blanche interview, Mr Koko said: “I have since the broadcasting of the interview been publicly vilified on a regular, relentless basis and at every turn, not only by Carte Blanche, but by the media of all stripes and also within Eskom and elsewhere, for supposedly having lied during the interview, on camera, about the pre-payment for coal to Tegeta, or as it has often been presented, to a Gupta-linked company. This vilification has been baseless. I did not lie on camera at all.

“During the interview Ms Govender asked me whether Eskom had pre-paid Optimum Coal Mine. I responded that it (Eskom) did not. That response was quite correct. Eskom did not prepay Optimum. The agreement that the Board Tender Committee (BTC ) approved on 11 April 2016 was for pre-payment for coal to Tegeta, which was an entity distinct from Optimum, that Tegeta was able to secure and source from Optimum. It would have been irregular for Eskom to have paid Optimum Coal Mine for the Arnot power station – Eskom had no contract with Optimum for the supply of coal to Arnot,” he said.

He reiterated that the contract was between Eskom and Tegeta.

He said the allegations that were made by former board member before the inquiry were false. Mr Koko said Ms Venete Klein’s statement suggesting that “I habitually acted in a dictatorial manner vis-à-vis my subordinates in any period relevant to my appointment as interim Group Chief Executive was untrue and simply made to cast me in a bad light.

On whether he had links with the Gupta brothers, Mr Koko said he has no links with the Gupta brothers and has not met with them. He, however, informed the Committee that he knew associates of the Guptas, Mr Salim Essa and Mr Nazeem Howa. He said he knew Mr Howa, who was the CEO of Tegeta and Mr Essa, who was a shareholder of Trillian.

Mr Koko said during the inquiry a lot of things have been said in the Committee, which are inaccurate and “I knew I would respond and will have the opportunity to respond”.

On whether he would heed the call to resign and follow suit, Mr Koko said he won't be quitting, despite a government recommendation that he be removed.

His lawyer has written to the Eskom board saying that any attempts to remove him from his job must be lawful.
Mr Koko says he can play an indispensable role at Eskom and he won't be a scapegoat for the Public Protector's State of Capture report.

Next week the inquiry will continue, the Committee will receive evidence from Deputy Minister for Public Enterprises Mr Ben Martins and former Prasa CEO Mr Lucky Montana.

 

Issued by Parliamentary Comunication Services on behalf of the Inquiry for the Portfolio Committee of Public Enterprises, Ms Zukiswa Rantho