Matshela Koko

Last updated

Matshela Koko
Born
Matshela Moses Koko
Citizenship South African
Alma mater University of Cape Town
Employer Eskom (1996–2018)

Matshela Moses Koko is a South African engineer and business executive. He is best known for his tenure as a senior executive at Eskom between 2014 and 2018. During that time, he was Eskom's acting chief executive officer from 2016 to 2017. The Zondo Commission implicated him in the Gupta family's capture of Eskom.

Contents

Early life and education

Koko obtained a Bachelor of Science in chemical engineering at the University of Cape Town. [1]

Career at Eskom: 1996–2018

In September 1996, he joined Eskom as an engineer-in-training at the Duvha Power Station in Witbank, Mpumalanga. [1] Remaining at Duvha for the next eight years, he was appointed as engineer for pressure parts and boiler plants in 2000. [2] In 2004, he moved to Eskom headquarters, becoming senior manager for power plant engineering in the enterprises division. [2] He moved to Eskom's generation division in 2009 as the division's senior manager for engineering. The following year, he was appointed as the divisional executive for group technology. [2] In 2014, when his technology division merged with the commercial division, he became group executive for technology and commercial. [1]

In March 2015, Koko was one of four Eskom executives who were suspended pending an internal inquiry into maladministration at the utility; the chairperson of Eskom's board, Zola Tsotsi, told the press that Koko's division was "rotten" and that Koko was resisting a forensic inquiry into possible corruption in the division. [3] The details of the ensuing internal inquiry, which was led by Dentons, were not made public, but Koko was reinstated. [4]

In late October 2015, newly appointed Eskom CEO Brian Molefe announced that Koko had been appointed as group executive for generation at Eskom. [4] During the year that followed, the incumbent Minister of Energy, Tina Joemat-Pettersson, pursued controversial plans for further investment in nuclear energy generation; [5] Koko was viewed as "pro-nuclear". [6] [7] Also during this period, Koko's generation division came under scrutiny for controversial coal procurement deals that were alleged to favour the politically connected Gupta family. In October 2016, the Public Protector, Thuli Madonsela, published a report on state capture entitled State of Capture, which identified the coal deals as potentially unlawful and corrupt. [6]

Molefe resigned from Eskom as a result of the State of Capture report. On 30 November 2016, the Minister of Public Enterprises, Lynne Brown, announced that she would appoint Koko to replace him as acting Eskom CEO with effect from 1 December. [2] [8] Under his leadership, Eskom issued requests for proposals in its bid to procure 9.6 gigawatts of nuclear power. [9] However, Koko was replaced as acting CEO in mid-2017 when he was subject to internal disciplinary charges. The charges arose from revelations that his stepdaughter's company had done over R1 billion in business with Eskom. [10]

The disciplinary inquiry exonerated Koko, and he returned to work on 8 January 2018, though he was not returned as acting CEO; instead, he returned to his permanent position as head of generation. [11] The National Union of Metalworkers of South Africa said that the disciplinary process was "a mockery and an insult to all those who believe in good corporate governance" and that by reinstating Koko, "The Eskom board is clearly showing the people of South Africa the middle finger". [12] Through January, Koko faced mounting pressure to resign from Eskom, and at the end of the month, a newly appointed Eskom board announced that it had given Koko an ultimatum, telling him that he would be fired if he did not resign within 24 hours. [13]

However, Koko lodged an urgent application in the Labour Court of South Africa, seeking to block his dismissal. Eskom promptly reversed itself, withdrawing the ultimatum and instead instituting fresh disciplinary charges against him. Two of the new charges related to Eskom's Trillian–McKinsey deal, and the other two charges related to Koko's personal dealings with the Gupta family. [14] Koko was suspended again pending the conclusion of the new disciplinary inquiry. [15] The new disciplinary tribunal met only once before, on 14 February 2018, President Jacob Zuma resigned from office; within two days, Koko had tendered his own resignation from Eskom. [16]

Corruption charges: 2022–2024

In March 2019, the Sunday Times broke the first in a series of stories alleging that a corrupt relationship existed between Koko and Swiss ABB, which was awarded a R2.2-billion contract for the construction of the Kusile Power Station. [17] Over three years later, in October 2022, Koko and several others – including his wife and two stepdaughters – were arrested and brought up on related charges. [18] However, the National Prosecuting Authority (NPA) suffered extensive delays in preparing for trial and requested multiple postponements. [19]

In November 2023, the Specialised Commercial Crimes Court in Middelburg, Mpumalanga struck the case from the roll. [20] Citing the accused's right to a speedy trial, the court ordered that the case could not be reinstated without the written authorisation of the National Director of Public Prosecutions, Shamila Batohi. [21] Commentators criticised the NPA's Investigating Directorate for having "bungled" the prosecution. [22]

Other corruption allegations

Areva contract at Koeberg

In 2014, Eskom signed a controversial R5-billion contract to refurbish steam generators at Koeberg Nuclear Power Station, awarding the tender to French Areva. A competing bidder, Japanese–American Westinghouse, challenged the award in court, claiming that it had been made improperly. [23] In particular, Westinghouse alleged in court papers that divisional executive Koko and acting Eskom CEO Collin Matjila had intervened in the procurement process in a manner that suggested they were "intent on having the award made in favour of Areva". [24] However, in December 2016 in Areva v Eskom, the Constitutional Court of South Africa ruled in Eskom's favour, upholding the contract. [25]

Tegeta transactions

The Zondo Commission recommended that Koko should face criminal prosecution for his role in the transactions that allowed Tegeta Exploration and Resources, a Gupta-owned firm, to acquire the Optimum coal mine using Eskom funds. [26] The commission's report described Koko as being among the Eskom executives who were "Gupta agents who were prepared to do the Guptas’ bidding when required to do so". [27]

Personal life

He is married to Mosima Koko. [28]

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References

  1. 1 2 3 "Fact-sheet: Matshela Koko's key facts on his journey with Eskom". IOL. 24 January 2018. Retrieved 12 June 2024.
  2. 1 2 3 4 "Minister Lynne Brown approves appointment of Matshela Koko as Eskom's Acting Group CEO". South African Government. 30 November 2016. Retrieved 12 June 2024.
  3. ↑ "Tsotsi and Eskom executive at war over tender". The Mail & Guardian. 27 March 2015. Retrieved 12 June 2024.
  4. 1 2 "Scandal-plagued Eskom executives retained, promoted". The Mail & Guardian. 23 October 2015. Retrieved 12 June 2024.
  5. ↑ Cordeur, Matthew le (12 October 2016). "Eskom gets lead role in state's new nuclear masterplan". News24. Retrieved 12 June 2024.
  6. 1 2 "Scandal dogs Koko, the Eskom man rumoured to step into Molefe's shoes". The Mail & Guardian. 23 November 2016. Retrieved 12 June 2024.
  7. ↑ Styan, James-Brent (6 February 2017). "Life after Brian". News24. Retrieved 12 June 2024.
  8. ↑ "Lynne Brown approves appointment of Matshela Koko as acting CEO of Eskom". The Mail & Guardian. 30 November 2016. Retrieved 12 June 2024.
  9. ↑ "SA's nuclear plans: Fanning the flames of suspicion". News24. 13 December 2016. Retrieved 12 June 2024.
  10. ↑ "How Eskom lavished its boss's daughter with R1bn in contracts". Sunday Times. 26 March 2017. Retrieved 12 June 2024.
  11. ↑ Omarjee, Lameez (3 January 2018). "Matshela Koko back at Eskom, but not as acting CEO". Business. Retrieved 12 June 2024.
  12. ↑ "Numsa condemns Eskom's decision to reinstate Koko". The Mail & Guardian. 6 January 2018. Retrieved 12 June 2024.
  13. ↑ Groenewald, Yolandi (26 January 2018). "Koko ignores ultimatum to resign, takes Eskom board to Labour Court". News24. Retrieved 12 June 2024.
  14. ↑ "Koko to face a new disciplinary hearing". The Mail & Guardian. 6 February 2018. Retrieved 12 June 2024.
  15. ↑ Niselow, Tehillah (1 February 2018). "Eskom's Koko facing four new charges, including misleading Parliament". Business. Retrieved 12 June 2024.
  16. ↑ "Suspended Eskom executive Matshela Koko resigns". The Mail & Guardian. 16 February 2018. Retrieved 12 June 2024.
  17. ↑ "Matshela Koko's Eskom looting frenzy". Sunday Times. 10 March 2019. Retrieved 12 June 2024.
  18. ↑ Ferreira, Emsie (27 October 2022). "Koko, wife and stepdaughters arrested over Kusile power station contract". The Mail & Guardian. Retrieved 12 June 2024.
  19. ↑ Pheto, Belinda (31 October 2023). "No indictment in Koko Eskom graft case – one year later". News24. Retrieved 12 June 2024.
  20. ↑ Pheto, Belinda (21 November 2023). "Court strikes Koko Eskom graft case from the roll, finds there were unreasonable delays". News24. Retrieved 12 June 2024.
  21. ↑ Mahlangu, Isaac (21 November 2023). "Former Eskom boss Koko off the hook in R2.2bn fraud case". Business Day. Retrieved 12 June 2024.
  22. ↑ Hawker, Dianne (25 November 2023). "National Prosecuting Authority's bungled Matshela Koko Kusile corruption case sounds the alarm bells over directorate's preparedness to prosecute". Daily Maverick. Retrieved 12 June 2024.
  23. ↑ "Twist to Koeberg tender". The Mail & Guardian. 6 November 2014. Retrieved 12 June 2024.
  24. ↑ "Was R4bn nuke tender hijacked?". The Mail & Guardian. 10 October 2014. Retrieved 12 June 2024.
  25. ↑ "Eskom wins ConCourt nuclear battle". News24. 21 December 2016. Retrieved 12 June 2024.
  26. ↑ "Zondo recommends former Eskom executives Koko and Singh face criminal charges". The Mail & Guardian. 29 April 2022. Retrieved 12 June 2024.
  27. ↑ Ndlovu, Mandisa (23 June 2022). "R57-billion: How the Guptas played Monopoly with state money". The Mail & Guardian. Retrieved 12 June 2024.
  28. ↑ Nonyane, Mduduzi (3 April 2023). "Former Eskom boss Matshela Koko's wife slapped with R1.7 million tax bill". City Press. Retrieved 12 June 2024.
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