BLSA suspends Eskom, Transnet

The organisation recently also suspended KPMG following  amid revelations of its involvement in state capture.

 

BLSA says it has suspended the two state-owned enterprises due to the cloud of corruption allegations against it.

 

BLSA CEO Bonang Mohale says South Africans are justifiably outraged.

 

"South Africans have been rightly disturbed in recent times at the numerous allegations of corrupt behaviour and colossal failures of corporate governance and accountability at both Eskom and Transnet. This behaviour is entirely at odds with the values of BLSA, captured in our Integrity pledge."

 

Mohale says neither of the SOEs demonstrated that they understood the seriousness of the issues at hand.

 

"Neither of the SOEs were able to give BLSA comfort that they had the requisite will and purpose to put their houses in order. This left BLSA with no choice but to suspend their memberships from the organisation. We will take a zero-tolerance approach to any organisation found in breach," he explains.

 

Mohale says the state of affairs at Eskom poses a systemic risk to the country's economy.

 

"With regard to Eskom in particular, as the country's national electricity is a strategic asset and due to multiple governance and operational failures, and a stretched balance sheet, now represents systemic risk to the economy as a whole. Until and unless a non conflicted, experienced and permanent Chairman and Board are appointed - who in turn appoint an experienced and honest executive team - Eskom will loom large over the economy as a threat to stability and economic growth."

 

BLSA calls for government to expeditiously set up the judicial investigation into allegations of state capture.