Public Enterprises Minister Lynne Brown's control of Eskom has been drastically curtailed as a raft of changes were announced at the utility yesterday, including appointment of a new chairman.
Deputy President Cyril Ramaphosa last night put Eskom under the oversight of a team of ministers, that he will lead himself, comprising Brown, Energy Minister David Mahlobo and Finance Minister Malusi Gigaba.
The radical changes are further evidence of a loss of confidence in Brown, who has been accused in some quarters of assisting in the capture of Eskom for the benefit of the Gupta family and their associates.
Ramaphosa was chairman of the inter-ministerial committee overseeing Eskom until the parastatal was moved to Zuma's office in 2016.
Ramaphosa named Jabu Mabuza, now at Telkom, as the new chairman of the struggling power utility, and appointed a new interim CEO, Phakamani Hadebe.
The changes - regarded as essential in saving South Africa from embarrassment at the World Economic Forum in Davos - were thrashed out during talks attended by Brown, Ramaphosa, Gigaba and President Jacob Zuma on Friday night.
It was the first Brown had heard of the changes, which a government source said had been proposed by Gigaba.
"Gigaba has been having meetings with Ramaphosa from the start of the week because he is really worried about Eskom," the source said. It is a very real risk to the economy ... The minister feels that minister Brown does not appreciate how serious this is."
The Sunday Times understands that Gigaba proposed Mabuza and former finance minister Nhlanhla Nene as candidates for the Eskom chairmanship. However, Brown raised reservations about Nene at Friday's meeting.
Ramaphosa, elected president of the ANC last month, ordered Eskom's board to get rid of executives who have been linked to the utility's capture by allies of the Gupta family, who have cultivated close ties to Zuma.
"The board is directed to appoint a permanent group CEO and group chief financial officer within the next three months," his statement said.
"The board is directed to immediately remove all Eskom executives who are facing allegations of serious corruption and other acts of impropriety, including Mr Matshela Koko [head of generation] and Mr Anoj Singh [chief financial officer]."
Gigaba has been having meetings with Ramaphosa from the start of the week because he is really worried about Eskom
In July last year Gigaba intervened in the malaise at Eskom by forcing the suspension of Singh. Eskom had resisted taking action against Singh despite threats from the Development Bank of Southern Africa that failure to do so would force it to recall a R15-billion loan facility.
"We are confident this intervention will restore the important contribution Eskom makes to our economy," Ramaphosa said. "We are determined to address the damage that has been done to this institution and place it on a new path of efficiency and integrity."
On Friday night Ramaphosa told the NEC that action was needed before the WEF meeting which opens on Tuesday.
"[Eskom] was raised by the DBSA head who said we should not go to Davos because what is going to happen with Eskom is going to plunge the country into a great calamity," he said. "Lenders may not take up Eskom bonds. The World Bank wants to call their money and this will have a domino effect on its debt."
This week Gigaba sounded a stern warning about Eskom's precarious situation, saying it could collapse the economy.
Former Eskom chairman Zethembe Khoza confirmed yesterday that he had quit, hours before Ramaphosa's statement.
Brown's spokesman, Colin Cruywagen, could not be reached for comment.
