Suspended Eskom CFO tenders resignation


Eskom received on Monday, through Mr Anoj Singh’s attorneys, a formal letter of resignation by Mr Singh from his position as the Chief Financial Officer of Eskom, in line with the terms of his employment contract. The board of Eskom, through the Chairman, has accepted the resignation.

According to a formal statement by Eskom: “The board of Eskom, through the Chairman, has accepted the resignation and communicated the acceptance through Mr Singh’s attorneys.

“Mr Singh’s resignation is with immediate effect.”

The suspension of Singh follows “allegations that he was involved in irregularly awarding contracts to Gupta-linked businesses, and also received gifts and trips from the controversial family.”

Singh was placed on special leave in July 2017 and suspended by the power utility in September according to Fin24 .

Parliament’s portfolio committee on public enterprises is investigating mismanagement of state funds at the power utility – and the new Board has announced that wiping out corruption at Eskom will be high on the board’s agenda. This follows instructions from ANC president Cyril Ramaphosa for the Eskom board to root out corruption at the utility.

Singh was due to be questioned by MPs this week.

Eskom has to raise R20 billion ($1.6 billion) over the next two months in order to meet the ‘going concern’ criteria of its auditors. This is a requirement for the utility to publish its interim financial statements – already three months overdue – in order to avoid having its bonds suspended by the JSE – which would severely hamper the utility’s ability to raise debt on the international market.

Overall, 10 charges were laid against Singh including issues relating to Eskom’s invalid contracts with McKinsey; lying to Lynne Brown, Minister of Public Enterprises about contracts with Trillian Capital Partners, a company associated with the Gupta family and failing to declare that the Guptas had paid for his travels to Dubai.  It is also alleged he “made misrepresentations to the board-tender committee to secure the payment of R1.6bn ($132.2 million) to McKinsey and Trillian,” reports the Business Day.

The Business Day reports further that “Singh was also charged for his role in Eskom’s questionable prepayment guarantee of R1.6bn for Gupta-owned Tegeta Exploration and Resources, which enabled it to buy the Optimum Coal Mine from Glencore, as well as the prepayment of about R600m to Tegeta for coal supplies.”

Picture credit: FINANCIAL MAIL