Eskom loadsheds top brass

Eskom's finances will be in no better shape due to the suspension of its CEO, Tshediso Matona, and three other executives.

Shortly after chairman Zola Tsotsi announced the suspensions, yields on the state-owned energy company's bonds rose sharply, suggesting that financing its revenue shortfall of more than R225-billion will be even more expensive.

Tsotsi was vague about why the executives would need to step down for three months while Eskom commissioned "an independent inquiry" on the "status of the business and its challenges".

Joining Matona out in the cold are finance director Tsholofelo Molefe, head of capital Dan Marokane and commercial and technology executive Matshela Koko.

Trade union Solidarity welcomed the suspensions. Spokesman Deon Reyneke said Eskom had been run too much "like an extension of the state".

Matona was director-general of the Department of Public Enterprises before August.

"Because of the way in which Eskom was managed over the past few years, highly skilled and experienced individuals left the utility's service. Eskom employees have lost confidence in senior management," Reyneke said.

Zethembe Khoza, a non-executive board member of Eskom, will act as its CEO.

The inquiry will look into the poor performance of Eskom generation plants; delays in bringing new plants on stream; the high costs of primary energy; and cash flow difficulties.

Tsotsi emphasised that it should not be seen as an "investigation" as this would imply blame and culpability of the suspended executives. He said the Eskom board had not lost confidence in Matona's ability to lead.

Energy analyst Chris Yelland tweeted that he believes "this crisis and the suspensions at Eskom have everything to do with massive cost and time overruns at Medupi, Kusile and Ingula", the power plants under construction.

Eskom said load-shedding was highly likely at the weekend.