Eskom executives to undergo lifestyle interest audits
Power utility Eskom will implement independent audits on its leadership, with members of the executive committee, as well as divisional executives and senior general managers, to undergo regular independent lifestyle and conflict-of-interest audits, interim CEO Sean Maritz announced at the last leg of the public hearings into Eskom’s application for tariff increases, in Gauteng.
He said the company’s executive committee had resolved to take bold action to shift the organisation’s reputation towards positive change.
“In so doing, we have adopted a five-path plan to rebuild a robust governance process and preserve our core value of integrity. This includes strengthening our general internal ethics and fraud framework, where we have reviewed and approved our ethics and fraud management policy.”
He noted that the utility had launched an educational programme, The Way, which would inform the Eskom board, leadership and employees about their responsibilities towards ethical conduct and reporting.
This included providing safe avenues for staff to blow the whistle on governance irregularities and crime.
Further, the utility is terminating all irregular supplier contracts and work.
“I can confirm that the McKinsey contract was terminated in July. The contract with Impulse International has been suspended, pending the outcome of a forensic investigation. There are no dealings with Trillian contractually or otherwise.
“A legal verification was instituted on McKinsey, Trillian and Impulse after respective investigations conducted by independent investigators. Independent audits on the Tegeta contracts have been clarified as being within the range of other similar contracts and all control gaps have since been tightened,” Maritz said.
He added that Eskom was enhancing the internal commercial governance process and had reviewed its delegation of authority, ensuring that decision-making powers fell within appropriate levels of management.
The utility has also implemented additional governance structures for tender approvals, “creating the opportunity to increase the focus and time for robust scrutiny”. To enhance operations, Maritz noted two dedicated teams had been established.
The first was focused on a recovery programme in closing out the audit qualification.
The second, established two years ago in line with Eskom’s design-to-cost strategy, was driving the internal efficiency and cost-containment programme in the business.
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