Lynne Brown 'saved Eskom's Matshela Koko after plea from Guptas'

Minister said to have blocked board action against acting CEO

03 September 2017 - 00:02 By MZILIKAZI wa AFRIKA
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Minister Lynne Brown denies getting instructions from the Guptas.
Minister Lynne Brown denies getting instructions from the Guptas.
Image: ESA ALEXANDER/SUNDAY TIMES

A last-minute call from Public Enterprises Minister Lynne Brown is believed to have scuppered a special Eskom board meeting convened six months ago to suspend then acting Eskom CEO Matshela Koko.

The meeting was held in March - five months before Koko was eventually suspended on August 2 in connection with contracts worth millions of rands awarded to Impulse International, where his stepdaughter was a director.

The initial decision to suspend him was taken by Ben Ngubane - who was chairman at the time - after he received a damning whistleblower's report.

On March 2, Ngubane called a special meeting with the intention of suspending Koko. It started at 6pm, but seconds later Brown phoned Ngubane and ordered him not to go ahead, said a source who was at the meeting.

"Koko was summoned to be served with a letter of intention to suspend him but was told to wait outside as Ngubane first wanted to inform the board why he had called the meeting," the source said. "The minister called him out of the blue and ordered him not to do it."

Another source said one board member was later overheard boasting that he had phoned the Guptas to warn them.

"It is alleged that the Guptas then phoned the minister and asked her to stop Ngubane from suspending Koko, who was their eyes and ears at Eskom," the source said.

According to two separate investigations, Koko allegedly leaked Eskom legal opinions to the Guptas and arranged a R659-million prepayment for their company Tegeta Exploration and Resources.

Leaked Guptas e-mails reveal that the controversial family once flew Koko to Dubai and spent R11,500 on his accommodation.

Singing a different tune

Eskom chief financial officer Anoj Singh was allegedly behind the power utility’s lies when it defended payments of R1.6-billion to Gupta-linked Trillian and McKinsey. Eskom this week admitted it had lied in June when it said that a review by Oliver Wyman‚ a management consultancy headquartered in New York‚ had found the payments to be above board

It also linked Koko to the awarding of contracts to Impulse International without going through tender processes.

The letter Ngubane wanted to serve on Koko, which the Sunday Times has seen, said the allegations against him "are of such a nature that they require a suspension pending an investigation and disciplinary action".

Ngubane, who has since resigned as Eskom chairman, said this week: "The minister called me from time to time on a number of issues, but I can't be specific about those calls." He declined to discuss the planned action against Koko at the March meeting.

Brown this week denied getting instructions from the Guptas. "I don't remember anyone or the Guptas calling me to give me instructions not to suspend any official," she said.

She declined to say if she had phoned Ngubane on March 2. "I speak to board chairpersons often for reputation matters, but I don't give them instructions. In fact, I am the one who told Koko that he must consider stepping aside," she said.

Koko is facing 10 charges, including conflict of interest, misconduct and conducting himself in an unacceptable manner in terms of Eskom's values and ethics. His disciplinary hearing was due to start on Friday but was postponed after he requested further particulars. A new date is yet to be set.


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