Maroga resigns as CEO of Eskom following DA expose

The Democratic Alliance (DA) has learnt that Jacob Maroga has resigned as CEO of Eskom, following months of exposes from the Democratic Alliance.

An internal memo (see below), distributed within Eskom this morning, stated:

"Dear Colleagues

Mr Jacob Maroga has resigned as CEO of Eskom with immediate effect.

The Eskom board is presently considering who will be acting on his behalf and will inform business in due course.

They are also committed to fill his position within 90 days"

Jacob Maroga's resignation follows months of exposes from the Democratic Alliance, including the public release of confidential memos that demonstrated serious failures on Maroga's behalf. Of particular importance in this regard is:

• Maroga's decision to fire international energy consultant, Susan Olsen, who warned in a confidential memo to Maroga that Eskom's coal procurement practices were placing electricity supplies in jeopardy. Maroga appeared to do little to act on Olsen's advice, and ultimately South Africa endured a period of "load shedding" which cost the country approximately R2 billion per day. The Olsen memo was leaked publicly by the DA.

• The details provided in a series of classified memos and reports, leaked to the public by the DA, which show how Eskom's lack of experience and failure to understand coal markets played a significant role in their later supply problems, and how Eskom's "haemorrhaging [of] talented staff" - in Olsen's words - had left the power utility lacking "leadership, experience, knowledge and direction". This week, DA released a report by Eskom's technical corporate audit division, which outlined the serious shortages in senior staff at the utility and supported Olson's findings. Again, Maroga appeared to pay no attention to these warnings.
• How, under Maroga's tenure, no action has been taken to address serious problems with the Medupi power plant, raised in a confidential memo released publicly by the DA. Of particular concern here was that, under the current plan, the power plaint may drain parts of the Waterberg, including Hartebeestpoort dam, and may inflict untold and irreversible environmental damage. Again, Mr. Maroga has failed to respond adequately to this matter.

Maroga's resignation is to be welcomed, and needs to be followed up by further actions to ensure that Eskom is pulled out of the quagmire of gross mismanagement which is costing South Africans millions of rands on a daily basis. However, questions remain as to why President Zuma apparently intervened in the decision of the board to dismiss Maroga.

Statement issued by Cobus Schmidt, MP, Democratic Alliance deputy shadow minister of energy, November 5 2009

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