Business Leadership South Africa (BLSA) has reinstated the membership of Eskom, which it terminated last year due to allegations of state capture and corruption at the firm, the organisation said on Wednesday.
BLSA CEO Bonang Mohale said the decision to lift Eskom’s suspension was taken in recognition of the progress made by the power utility’s new board since its appointment.
In January, government appointed a new board led by chairperson Jabu Mabuza in an attempt to bring leadership and stability to the troubled power generator.
“After careful consideration of all the actions that the new administration and the new board of Eskom have taken to address Eskom’s governance, capital structure and leadership challenges which have hobbled operational effectiveness of the largest utility in our country, BLSA has decided it is now appropriate to lift Eskom’s suspension,” said Mohale.
He said the Eskom leadership has been informed of the decision.
BLSA suspended Eskom’s membership in September 2017, in the wake of serious allegations of state capture and corruption.
The organisation, which represents big business in the country, said it was encouraged by the undertakings made by the Eskom board since its appointment, including the resignation of compromised executives.
Eskom has seen an influx of resignations of top management leaders, including former acting CEO Matshela Koko who left the power utility under a cloud.
“We recognise that their departure clears the way for the new leadership to proceed with the process of stabilising the operations of Eskom whilst restoring the company to financial health,” said Mohale.
Last week Minister of Public Enterprises Pravin Gordhan appointed Phakamani Hadebe as the new CEO.
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