Parliament, Wednesday, 18 October 2017 – The Portfolio Committee on Public Enterprises was briefed by Mr Brian Dames, former Chief Executive of Eskom – and also by the Organisation Undoing Tax Abuse (Outa).
Briefing the Committee, Mr Dames said the work being done by the Committee is commendable but “I think it’s too late – you should have done this a long time ago”.
Mr Dames briefed the Committee on the corporate governance at Eskom during his tenure as Chief Executive there.
Acting Chairperson, Ms Zukiswa Rantho, said: “I am worried you say we started the process late. To me, you’re saying we let the country down and you were one of the people who were at Eskom and you knew what was happening and you did not report to the Committee or to the law enforcement agencies.”
“I had raised the alarm and engaged with the former chair of the Committee I may not have articulated it correctly,” said Mr Dames.
Mr Dames informed the Committee that the governance of Eskom during his time was well-defined and well-structured. The tone of the governance changed after the 2010 World Cup and the appointment of a new board under the chairmanship of Mr Zola Tsotsi.
Responding to questions from the Committee, as to whether Mr Dames had met with the Gupta family. He said: “I was asked to meet some people by the former minister of Public Enterprises adviser, Mr Siyabonga Mahlangu arranged the meeting. I was angry after the meeting and told him that I will not meet with these people again. It was a strange meeting as there were three agenda items that were to be discussed, the coal contracts including The New Age Breakfast show was part of the meeting.”
The Committee noted with concern the response provided by Mr Dames when he could not recall the individual he had met during the meeting arranged by adviser to the former Public Enterprises Minister.
The Committee asked Mr Dames to explain the increases in the price of coal in the procurement processes during his time. The Committee alluded to the Hitachi deal and that it was an embarrassment for the country. The Committee was of the view that even though Mr Dames reported tender irregularities in the procurement processes, his voice was not loud enough.
The Committee asked if it was correct for the Minister to interfere and intervene in the procurement processes. Mr Dames said the Minister only intervenes if no proper processes have been followed.
Members of the Committee said the inquiry will look into repurposing the power utility and investigating the mismanagement of state funds in State-Owned Enterprises (SOEs) and the involvement of the Gupta family. One of the mandates of the inquiry is to look into the financial sustainability of Eskom.
ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE ACTING CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES, MS ZUKISWA RANTHO.
Media enquiries or interviews with the Chairperson, please contact:
Name: Ms Yoliswa Landu
Parliamentary Communication Services
Tel: 021 403 8203
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E-mail: ylandu@parliament.gov.za
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