One of South Africa’s brightest stars, who was caught in the State Capture investigation by the previous Public Protector, is heading for parliament.
The nomination of former Eskom CEO Brian Molefe to Parliament has divided the ruling African National Congress and its alliance partners, with the SACP in the North West province labeling the move as “wrong, problematic and unprocedural”.
Molefe resigned from Eskom after the Public Protector’s State of Capture report found that he had made 58 phone calls to the Gupta family and visited their home in Saxonworld on numerous occasions while Eskom was providing the Gupta’s with the means to take over a mine and supply coal.
Molefe dismissed the findings, and broke down in tears at a media function, offering the explanation that he had been visiting a “shebeen” in the area instead. But he was ridiculed when the shebeen was not found.
The rise
Get used to Brian Molefe’s name — you may be hearing it a lot more often. Parliament on Friday confirmed that the disgraced former Eskom CEO was nominated to fill a vacancy on the ANC’s North West list, despite reports that Molefe is not in fact a member of a branch in the province.
There is speculation that he might be nominated to replace current Finance Minister Pravin Gordhan, or become his deputy. It is seen by most observers in SA as a Gupta sponsored move.
But who is Molefe? He’d have the experience for sure. In the early years of his career Molefe worked at treasury for eight years.
Molefe has long been considered a rising star, earning plaudits as a civil servant of note. He was Eskom chief who ended the recent spate of load shedding problems that impacted very negatively on the South African economy and image abroad. His reputation as a Mr. Fix-it seemed secure.
Molefe was also CEO for seven years at the Public Investment Corporation (PIC). At the PIC, he led a period of spectacular growth in assets under management from R308 billion to just under R1 trillion between 2003 and 2010.
The fall
So where did it go wrong?
Business Day argued that it Molefe’s success at Eskom was overblown as he was helped by a surprise fall in demand for electricity — all at lower levels than 2007. But bringing an end to load shedding is where Molefe’s success ended.
His fall came at the hand of one of the most notorious business families in South Africa, the Guptas. Originally from Uttar Pradesh in India, the brothers allegedly amassed massive fortunes in South Africa thanks to their connections with government officials, and in particular Zuma.
Accusations around the family improperly benefiting from these connections came to a head with previous public protector Thuli Madonsela’s report on State Capture. It argues that Eskom paid the Guptas almost R1 billion in prepayments in respect of a contract to supply coal. The money was then allegedly used to buy Optimum Coal Mine (OCM) from Glencore, and may be corrupt, illegal and amount to fruitless and wasteful expenditure.
If that wasn’t damning enough, the report further laid out evidence that Molefe may have been “captured” by the family. Cellphone records were uncovered that showed Molefe and Ajay Gupta in telephone contact 58 times between August 2015 and March 2016, and Molefe visited the Guptas’ neighbourhood, Saxonwold, about 19 times between August 5 and November 17, 2015. Molefe argued otherwise, but Madonsela’s findings shredded his reputation as civil servant wunderkind. A few days later Molefe resigned from Eskom.
Now it seems Molefe is again headed for an important role in the public sector — perhaps one of the most important. Clearly a brilliant man, he was destined for great things, but his dealings with the Guptas has marred and devalued his exceptional qualities.
Cabinet reshuffle speculation
Molefe is due to be sworn in as Member of Parliament this week, amidst speculation that a Cabinet reshuffle is imminent and President Jacob Zuma will include him in his Cabinet.
“The appointment of Mr. Brian Molefe to represent the ANC as an MP strengthens the public outcry about corruption and the capture of the state by the parasitic bourgeoisie. This SACP views this in a dim light. This is against specifically the principle of legality where someone is fingered in a corruption report and at the same time promoted,” says the SACP spokes person.
The ANC parliamentary caucus will not be amused by having another complication and more outrage from voters as it heads towards the national election in 2019. The NEC had already tabled a motion for Zuma to step down, and a Molefe appointment to Cabinet may just be a step to far.
