Former worker suing Eskom for R100m

Eskom is facing a R100-million lawsuit brought by its former chief information officer.

In September Virgil Rabie, 54, launched a multi-million rand lawsuit against Eskom for loss of future earnings, pain and suffering and legal fees after he was fired in May 2011.

Although Eskom succeeded in having his particulars of claim set aside as “vague and embarrassing” and/or for not disclosing a cause of action in October, the Johannesburg High Court has given Rabie a chance to amend it.

According to a Johannesburg Labour Court judgment in 2011, Rabie, who worked for Eskom for four years, was “dismissed for misconduct relating to failure to disclose his interests in terms of his employer’s policy”.

Last week Eskom confirmed that Rabie “was dismissed for committing various misconducts”, but would not elaborate.

However, Rabie is adamant that the real reason for his dismissal was that Eskom had accused him of failing to declare that he knew an IT contractor who was hired at Eskom, allegedly on Rabie's recommendation.  Rabie denies this, saying the contractor was already working at Eskom when he was hired.

Rabie headed to the Commission for Conciliation, Mediation and Arbitration and reached a settlement with Eskom, in terms of which he was awarded R700 000 - six months' salary.

Rabie now wants the settlement agreement cancelled, saying he realised he was “shrewdly connived” into signing the deal after new information came to light in 2012.

Rabie says Eskom relied on a short report by professional services firm EY (formerly Ernst & Young) during his disciplinary hearing but that a full version of the same report, which came to his attention, exonerated him and proved that others had transgressed the policy but had not been fired.

Rabie accuses Eskom and EY of colluding to omit the full report.

Rabie also said that top managers at Eskom - including group executive for sustainability, Steve Lennon, and former chief financial officer Paul O'Flaherty - had hired friends, without any consequences.

Eskom has, however, rubbished these claims.

“All investigations … vindicated Eskom and its executives, finding there was no basis whatsoever to Mr Rabie’s allegations,” Eskom said last week.

Despite the denial, Rabie is suing Eskom for R96-million for loss of earnings for 15 years, R1-million for pain and suffering and R3-million for legal fees.

“I will never settle, no matter what they put on the table," he said.

The father of five, who now works as the Department of Trade and Industry’s chief information officer, described the last few years as “very traumatic”.

Rabie has also laid criminal charges of perjury and defeating the ends of justice against EY.

Gauteng police spokesman Lieutenant-Colonel Lungelo Dlamini confirmed police had investigated the matter, while head of the National Prosecuting Authority’s (NPA’s) Specialised Commercial Crimes Unit, Lawrence Mrwebi, confirmed the NPA was still decideing whether or not there was a case to pursue.

Mpho Lukoto, EY’s business writer, said the firm could not comment on the matter “due to client confidentiality”.

This is not the first time the parastatal has been sued by a former employee. In 2011 former CEO Jacob Maroga lost an R85-million lawsuit against Eskom after claiming he was wrongfully dismissed.