NUM position on the release of the ESKOM integrated financial results and the appointment of Jabu Mabuza as the ESKOM ACTING Group Chief Executive

The National Union of Mine Workers (NUM) is disgusted by the poor performance as reflected in Eskom integrated financial statement. Under the leadership of Jabu Mabuza as a chairperson of the board, Eskom has produced its worse performance ever. The loss which totals to 21 billion requires that the shareholder take action on this poor performance. The NUM expect heads to roll. We demand that the poor performing board be disbanded. We have said before that Eskom needs men and women with experience and skills in running a power utility. 

The four-pillar strategy as presented by Eskom is not talking to the problems of Eskom. We believe that the problems of Eskom are created at the policy level and can only be resolved at that level. The main problems of Eskom are the escalating price of primary energy, the drop of local and international sales, the Power Purchase Agreements, the escalating cost of Medupi and Kusile, the use of diesel to avoid load shedding and the municipal debt. It is clear that most of these problems can only be resolved at the policy level. The Independent Power Producers have cost Eskom R20 billion, surprisingly it is equivalent to the loss of R21 billion. 

On the appointment of Jabu Mabuza and Freeman Nomvalo

NUM as recognised trade union and as major trade union stakeholder vehemently and categorically reject Minister of Public Enterprise (Mr. Pravin Gordhan) in appointing Jabu Mabuza as Acting Group Chief Executive (AGCE) of the utility. This is disgusting and serious concerning to us as a stakeholder as we had indicated in the appointment of Phakamani Hadebe the specialist in the Land bank. In our inform view, this is a serious violation of Eskom Delegation of Authority Policy documentation (240-62072907). 

Eskom Delegation of Authority Policy is very clear on the role of the Eskom board, Chairperson of the board and GCE. Subsection that “The GCE shall be entitled to implement or give effect to a Board mandate in the manner s/he deems most effective”, subsection “Where power is delegated to more than one delegate, it shall be on the basis of different function responsibility and financial limit” and subsection 2.2.4 (1) (a),(b), and (c) state it very clear what the chairperson of the board role but now Jabu Mabuza he’s been made to be “holy ghost”, “omniscience” and “omnipresent”. The role and function of the chairperson of the board is a non-executive independent director. The GCE is operational on day to day and the GCE of the company does not fulfil the role of the chairperson of the Board.

Eskom GCE directly reports to the chairperson or chairman of the board of directors. .As the NUM we demand that Jabu Mabuza must voluntary publicise his qualifications because GCE has requirements which include, postgraduate business-related degree, proof of his undergraduate and matric results. 

The NUM is of the firm belief that there are enough qualified engineering and business understanding employees that can be utilised to transform our utility to regain its top five (5) utility in the world. Therefore we as NUM reject and we are very disgusted with this attitude shown by Minister of Public Enterprise (Pravin Gordhan). 

The NUM also reject the appointment of Freeman Nomvalo as the company’s Chief Restructuring Officer. We firmly believe that the restructuring function is in the job description of the Group Chief Executive Officer (GCEO). This is duplication of duties and it will create unnecessary conflict. We have indicated when Eskom appointed the Chief Operating Officer (COO) that it is a duplication of the duties. Now the GCEO will have nothing to do as his strategic work will be done by the CRO and the Operations are done by the COO.  

For more information, please contact:

Joseph Montisetse : NUM President: 083 809 2391

The National Union of Mineworkers 

7 Rissik Street. 

Cnr Frederick 


Tel: 011 377 2111 

Cell: 083 809 3257