RESIGNATION OF ESKOM BOARD CHAIR

On Wednesday 28th October, 2009, Eskom's CEO, Mr Jacob Maroga, offered to resign. The board accepted the resignation. The board's legal advice is that the resignation was quite clear in its intent, and the board was entitled to accept it.

On Thursday 28th Mr Maroga denied resigning. The board offered to submit this dispute of fact to binding private arbitration. Mr Maroga has not responded to this offer.

On Sunday, 8th November the board proposed a comprehensive set of measures which would have had the effect, if agreed by Mr Maroga, of requiring the board to state its case for why it believed the relationship with Mr Maroga had broken down irretrievably. Mr Maroga would then be given a reasonable period of time in which to respond. Mr Maroga rejected these proposals.

Thus far government, as ESKOM's sole shareholder, has been unable either to support the board's original decision (to accept the resignation) or its two attempts at resolving this dispute.

In these circumstances, and with the best interests of the organisation in mind, the only course of action seems to me to resign as chair and as director.

ESKOM is a critical national asset. The talented, dedicated and highly experienced people who work at ESKOM are more than capable of meeting its present challenges. My hope is the government will move quickly to ensure united and effective leadership.

Statement issued by Bobby Godsell, November 9 2009

Source: http://www.moneyweb.co.za/

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