Business Leadership SA reinstates Eskom's membership

Bonang Mohale, the CEO of BLSA. (Gallo Images / City Press /Leon Sadiki)
Bonang Mohale, the CEO of BLSA. (Gallo Images / City Press /Leon Sadiki)

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. 

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Yes, and I've gotten it.
21% - 1431 votes
No, I did not.
52% - 3585 votes
My landlord refused
28% - 1906 votes