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Former Eskom chair Ngubane at loss to explain how Gupta allies had forewarning of plans

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Dr. Ben Ngubane, the former chairperson of Eskom.
Dr. Ben Ngubane, the former chairperson of Eskom.
  • Ben Ngubane, testifying at the state capture inquiry, says he cannot explain how Gupta associates Salim Essa and Nazeem Howa knew in advance that Zola Tsotsi would be aske to step down as the utility's chairperson in early 2015.
  • Essa is a former business partner of Ngubane.
  • After Tsotsi stepped down, Ngubane served as Eskom's chairperson until he abruptly resigned in June, 2017. 

Ben Ngubane, the former chairperson of Eskom, says he has no idea how Gupta associates Salim Essa and Nazeem Howa knew in early 2015 that the utility's then-chairperson Zola Tsotsi would be removed before the board officially took the decision.  

"At Eskom very strange things happen," said Ngubane, when asked by the inquiry's chairperson, Judge Raymond Zondo.

Ngubane was testifying at the state capture inquiry for the third time on Tuesday, about events that transpired at Eskom in March 2015, when four senior executives were abruptly suspended. Tsotsi forced out soon after.

The suspension of the officials on March 11 – including Eskom's CEO Tshediso Matona and Chief Financial Officer Tsholofelo Molefe led to downgrade of the utility's SA's credit rating and calls by investors and lenders demanding explanations.

Eight days later, on March 19, Tsotsi was forced out as chairperson

Ngubane was then appointed Eskom's acting chair, a position later made permanent. He held the position until he resigned in June 2017.

Forewarning

The commission heard that the decision for Tsotsi to step down as chairperson and pressure to resign as director was made at a board meeting on March 19.

But on previous day, on March 18, an email had been sent between from Howa -then the head of Gupta holding company Oakbay Investments, to Essa, in the form on a draft media statement.

The email, which was read out at the commission, stated that Tsotsi had stepped down as the chairperson of the board.

But the decision was only made at a board meeting the following day.  

The commission did not say what the source of the email was, but it likely seems to stem from the  #GuptaLeaks, having been first reported on in 2017.

Zondo put it to Ngubane that both possible explanations for the draft media statement were concerning. The first was that members of the board had given Howa and Essa forewarning of what was planned. The second was that Howa and Essa, and possibly others, were directing the board to and the board was being "manipulated".   

Ngubane, in reply, said he could not explain the email. He has repeatedly denied taking orders from anyone while at Eskom.

On March 30, Tsoti's resignation was formalised. 

Essa – whose name has repeatedly come up in the inquiry - is a former business partner of Ngubane.

Ngubane told the commission they first met when he was chair of SABC.

At the time, Essa sat on the board of stsate-owned entity Broadband Infraco. Ngubane said that as part of his duties as chairperson of the SABC he would meet with the group.

The two in 2013 entered into a business, with each become a 50% partner in company called Gade Oil and Gas.

Company data shows the company is in the process of deregistration.

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