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Those labelling Mteto Nyati unpatriotic clearly do not know the man or choose ignorance and political expediency over facts, writes Tebogo Khaas.
Former Eskom group general manager for generation, Matshela Koko, his wife Mosima, and two stepdaughters recently appeared at the Middelburg Specialised Commercial Crimes Court on charges of corruption, fraud, and money laundering arising from alleged irregular contracts granted for the building of Kusile Power Stations valued at over R2 billion while Koko was a senior executive at Eskom.
According to Eskom, the generation division's mandate is to "…produce power and maintain the plant in order to consistently meet South Africa's electricity demand during peak periods or when required." The procurement function (for which Koko had oversight) is key to ensuring that the specialised engineering equipment responsible for generating power is procured, operated, and maintained in accordance with original equipment manufacturers' (OEM’s) specifications. An imperative to procure genuine replacement parts, quality coal, diesel, gas, and other consumables arises if the utility is to ensure that its fleet of power stations operates optimally.
The most significant chunk of Eskom's annual procurement budget is allocated to the generation division. Over the past five years, Eskom's total BEE measurable procurement spend totalled R731 billion, with black women-owned companies raking in a paltry 12% of that spend. Clearly, Eskom, like most large companies, has its work cut out to ensure that it improves black women and youth participation in its supply chain.
No interest
In its charge sheet, the National Prosecutions Authority (NPA) alleges that Koko used his position of authority at Eskom to corruptly facilitate a subcontracting arrangement between ABB, a Swiss-based OEM engineering supplier to Eskom, and Impulse International, a company in which his stepdaughter Thato Choma was a shareholder.
Whereas BEE subcontracting is intended to help accelerate the entry of black-owned small businesses into the targeted economic value chains, it is apparent that Choma had no interest in establishing legitimate business interests from the R2 billion control and instrumentation Kusile deal awarded to Impulse. Instead, the Cadreshians of the Koko family used most of the proceeds of their alleged crimes to sustain an ostentatious lifestyle that included expensive holiday excursions, shopping, and shindigs at exotic destinations worldwide.
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This type of corruption subverts government's black industrialists' policy which seeks to promote industrialisation, sustainable economic growth and transformation through the support of black-owned, particularly black woman and youth-owned, entities in the manufacturing sector through targeted skills development and transfer.
Also, it is widely anticipated that Koko will face more criminal charges with respect to the unlawful coal contract and acquisition of the Optimum Coal mine by Tegeta, a company owned by the Gupta family and former president Jacob Zuma’s son, Duduzane. In this matter, it is alleged that Koko unlawfully facilitated upfront payment for coal whose primary objective was to surreptitiously enable Tegeta to acquire Optimum, one of the strategic coal suppliers to Eskom, then owned by Glencore.
When news of Koko's arrest and court appearance broke, Numsa boss Irvin Jim incredulously took to Twitter to disparage the National Prosecutions Authority (NPA) and claimed that Koko was being unfairly targeted. While it would be expected of union leaders to be on the side of those safeguarding and advancing the interests and livelihoods of their members at Eskom, it is peculiar that Jim chose to side with those accused of wrecking Numsa members' golden goose. But that’s a story for another day.
Misleading headlines
BEE malpractice, abuse of authority, and corruption by former Eskom executives, including apparent imperviousness to these excesses by union bosses, are inimical to the ideals of BEE, the Industrial Policy Action Plan, and much-needed economic growth to absorb the jobless.
When slyly-crafted and misleading headlines by a Sunday newspaper were plastered across street poles, some pundits relished the opportunity presented by this to plant seeds of discord within and distract an Eskom board that had barely enjoyed a month's anniversary. Using flowery consultants' prose, some pundits claimed that Mteto Nyati, the Eskom board member who was the subject of baseless and unwarranted invectives following these misleading headlines, had gone rogue and didn't have a board mandate nor support after stating the obvious: corruption and under-performance are the root causes of Eskom's woes.
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Whereas some pundits premised their arguments on what Nyati never said, including insinuating that Nyati had called for the ejection of black-owned companies at Medupi and Kusile (where poor workmanship and sabotage is assessed to be responsible for poor performances at these power stations), some even resorted to lobbying hurtful statements redolent with anti-black sentiments.
Interestingly, whereas implicated companies like ABB, McKinsey, and Deloitte had apologised and paid back any monies earned corruptly at Eskom, Koko and others – deemed symbols of “black excellence and patriots” – remain petulant as if they’re entitled to help themselves to the public purse as alleged.
Lest we forget, in 2019 the Broad-Based Black Economic Empowerment (B-BBEE) Commission found Eskom guilty of awarding a tender for boilers at the Duvha power station in Mpumalanga, to a Chinese company that didn't meet BEE requirements, none of the individuals or "business councils" that assail Nyati said a word. Or, was political correctness a consideration?
For the avoidance of doubt, there are no anti-BEE pathways that Nyati seeks to create at Eskom. Some pundits just threw mud at Nyati, hoping that something would stick.
Perhaps the most erudite and sober analysis of Nyati's BEE and ethical moorings were by serial entrepreneur and co-founder of Sanlam Gauge, Andile Khumalo, who, when interviewed on 702 Radio opined thus:
The self-effacing Nyati is not only a trailblazer and patriot but one of the foremost champions of black empowerment, especially SME development. There's no doubt that he seeks to not only hold those responsible for adverse BEE outcomes at Eskom accountable but accelerate genuine transformation.
Nyati has done no more than heed the Zondo Commission's recommendations on public procurement by seeking to ensure that Eskom "derives maximum value in the procurement process". Put differently, Eskom (and by extension, the BEE project) derives no value if the pursuit of certain empowerment and transformation objectives are hijacked and rendered antithetical to their raison d’etre.
Until we courageously confront the malfeasance elephant at Eskom, we shall forever be beholden to the vagaries of corruption and maladministration. And thus, Eskom's woes will continue.
Taps are closing
For BEE to endure and succeed at Eskom, the utility - currently laying prostrate in theatre - must first be saved. And Mr Nyati, in lockstep with the board, seems to have laid their surgical hands firmly on the critical issues. Evidently, individuals and outfits that flourished from years of unbridled patronage and corruption at Eskom stand to be affected the most by this laser-focused Eskom's approach. The taps are closing!
Those labelling Mr Nyati unpatriotic clearly do not know the man or choose ignorance and political expediency over facts. Mr Nyati's BEE and transformation track record does not need validation nor affirmation, least of all the hideous, self-serving "captains of black business". He has ably demonstrated his commitment to the ideals of BBBEE and transformation at IBM, Microsoft, MTN, and Altron, where he, not only championed but initiated and implemented successful small enterprise development programs which have outlived his massively successful stints at these blue-chip companies.
Nyati's altruism and successes bear testimony to the assertion that the pursuit of excellence, even by those considered underdogs, can triumph over the seemingly insurmountable.
There are lessons to be drawn from last week's Eskom brouhaha. One of those lessons is that we must appeal to the better angels in ourselves if we are to overcome the seemingly unyielding burdens confronting us.
- Tebogo Khaas is Chairman of Public Interest SA, an NPC that seeks to cultivate ethos of ethical leadership, public accountability, good governance, and responsible citizenship.
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