CAPE TOWN, June 2 (Xinhua) -- South Africa's state-run electricity utility Eskom announced on Friday that it has rescinded its decision to re-appoint controversial Brian Molefe as its CEO.
The Eskom Board has given effect to Minister of Public Enterprises Lynne Brown's directive to rescind its decision to re-instate Molefe, who is allegedly linked with the much-criticized Indian Gupta family.
Brown on Wednesday ordered Eskom to rescind its decision to re-appoint Molefe as Eskom CEO following a public outcry over the re-appointment.
In mid-May, the Eskom board re-appointed Molefe as CEO, a move that outraged South Africans.
Molefe, who is allegedly embroiled in a corruption scandal in relation with the wealthy Gupta family, resigned from Eskom last November after then Public Protector Thuli Mandonsela named him in the "state capture" report as having contacts with the influential Guptas over Eskom tenders.
The report, while still under review, made observations against Molefe which, at the time, he had deemed serious and significant enough to warrant his resignation.
The report details the close relationship between Molefe and the Guptas and how key decisions were taken by Molefe, as the head of Eskom, for the ultimate benefit of the Gupta's and at the expense of the South African people.
The Guptas are accused of exerting undue influence on President Jacob Zuma in the appointment of cabinet ministers and CEOs of state-owned enterprises, a charge both denied by Zuma and the Guptas.
The re-appointment of Molefe as Eskom CEO prompted Zuma to set up an inter-ministerial committee consisting of several cabinet ministers, including Brown, Finance Minister Malusi Gigaba, Energy Minister Mmamoloko Kubayi and Minister of Justice and Correctional Services Michael Masutha.
In giving effect to and on the basis of Brown's directive, it was resolved that the resolution of the Eskom Board of Directors to re-instate Molefe CEO "is rescinded", Eskom said in its Friday announcement.
"Furthermore, it was resolved that the reinstatement agreement concluded between Mr. Molefe and Eskom on 11 May 2017 be rescinded," Eskom said.
In consequence, Molefe is no longer the Group Chief Executive of Eskom and will no longer serve as a director on the Board of Eskom, the utility said.
As an important economic driver in South Africa, Eskom is the 4th largest utility company in the world, providing more than 90 percent of the country's electricity. It operates the only nuclear power station on the African continent and employs 46,000 people.
Eskom made the announcement after the ruling African National Congress (ANC) urged the government to investigate newly emerging revelations about Gupta's influence over the South African government, known as "Gupta emails".
The "Gupta emails", believed to be originated from the Guptas and published last week by the Sunday Times and other South African news outlets, have further exposed the cozy relationship between Zuma and the controversial Gupta family, and the extent of the family's alleged power over South Africa.
According to the emails, the Gupta family was awarded lucrative contracts with South African state-owned enterprises (SOEs) through its close ties with Zuma and senior government officials, including a 570-million-rand (about 44-million-U.S.-dollar) dairy project in Vrede, the Free State Province.
"These reports contain very worrying claims about the nature of the relationship between government and private interests," the ANC said.
The ANC views these allegations "in a very serious light", the party said.
Accordingly, the ANC calls on the government to urgently seek to establish the veracity of these claims and explanation from those implicated, the ANC said.
