In early February Corruption Watch launched an application in the High Court in Pretoria, to have former Eskom board members declared delinquent. Our application, which is brought in the public interest in terms of section 157(1)(c) of the Companies Act 71 of 2008, focuses on the violation of fiduciary duties and gross negligence on the part of former board members.
The following former board members, as well as Eskom Holdings SOC Limited and the current minister of public enterprises, were served:
Mark Vivian Pamensky, Anoj Singh, Brian Molefe, Venete Jarlene Klein, and Zethembe Wilfred Khoza.
Our case comes at a time when the full effects of the failure of Eskom leadership to maintain infrastructure, ensure good governance, and is felt all around the country – and especially by those who struggle every day just to survive.
Despite the removal last year of the majority of the then board of directors of Eskom and the removal of Lynne Brown as minister of public enterprises, the lack of oversight and poor management in the preceding years has left Eskom in an impoverished position and has contributed to South Africa’s economic instability.
However, not everybody feels that those responsible should be held accountable.
David Lewis, executive director of Corruption Watch, commented: “State owned enterprises, and Eskom in particular, have been at the centre of the state capture conspiracy. Instead of protecting the interests of the company, Eskom’s erstwhile directors have abetted the looting of the entity. We are determined that there should be consequences for their conduct. This application is one way of exacting those consequences and in ensuring that they are not afforded another opportunity to conduct themselves in a similar fashion elsewhere.”
The purpose of such an application is to have those former directors who engaged in serious misconduct declared delinquent and excluded from holding directorships, in terms of section 162(5)(c) of the Companies Act, which aims to ensure that companies are managed by directors who are fit to occupy such a position. This is particularly important for state owned entities (SOEs) such as Eskom with its entire share capital held by the state and which, as our courts have held, are thus owned by the nation. The public has an interest in the prudent management of public funds and directors of SOEs are entrusted to act in the best interest of the company, and by extension the people of South Africa.
It has also emerged that Eskom was central to the state capture project and that directors abused their positions to enrich themselves and a host of third parties.
Download all our correspondence in the Eskom delinquency matter:
Adams & Adams letter representing Venete Klein – 22 March 2019
CW’s response to Adams & Adams letter of 22 March
Adams & Adams letter representing Venete Klein – 26 March 2019
CW’s response to Adams & Adams letter of 26 March
