According to reports, it appears the decision by the Eskom Board of Directors to place its chief financial director, Anoj Singh, on special leave was due to pressure from Development Bank of Southern Africa and other lenders.
The lenders together with Development Bank had told Eskom that they would recall their loans if Singh was not removed.
Financial Mail Editor, Rob Rose, says Eskom has been turning a blind eye for too long but didn't have a choice last week when the financial report was brought to light. They had some R3 billion in unaccounted for expenditures and the person who puts the finances together had to take responsibility, says Rose.
These guys see the risk at Eskom, they see the fact that there is unaccounted for expenditure and irregularities, they should act and in fact, they did, because nothing happened from the authorities side.— Rob Rose, Financial Mail Editor
Rose says this is an awareness from the private sector because companies are becoming more assertive. He alluded to the fact that another company fired KPMG amid corruption allegations linked to the Guptas.
To hear more of this interview, listen below:
This article first appeared on 702 : "Eskom had no choice but to act against Singh"