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Thread: What are the priorities of a parastatal board?

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    Site Caretaker Dave A's Avatar
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    What are the priorities of a parastatal board?

    Eskom is in the news on a regular basis nowadays, and for all the wrong reasons. Mostly this has been around its failures as the nation's electrical power utility, a series of problems that point towards some serious management problems.

    Just where those management problems come from have now become spectacularly evident.

    First Jacob Moroga resigned - or was it just a case of his resignation was announced?
    Then Bobby Godsell resigned and Jacob Moroga is back.

    This morning it seems that Jacob Moroga's resignation may be interpreted as a constructive dismissal in terms of labour legislation, hence he is back. Whilst I'm tempted to use the opportunity to say once again this shows the failings and poorly considered consequences of our labour legislation in South Africa, let's rather focus on what is really happening in that board.
    Two documents submitted last month to Eskom's board by chairman Bobby Godsell - who quit suddenly yesterday - and chief executive Jacob Maroga highlight the pair's conflicting approaches to securing the future of the state-owned enterprise.

    Maroga's analysis of the problems besetting Eskom focused on race problems and organisational transformation, while Godsell's assessment homed in on a host of technical matters and unfulfilled management mandates.
    full story from Business Report here
    Let's not beat around the bush here.

    What is the primary function of Eskom towards the building and advancement of this nation?
    I'd suggest to supply the nation with affordable, adequately available electricity.

    What is the primary function of a CEO?
    I'd suggest to impliment and execute the strategic directives of the board.

    Jacob Moroga doesn't seem to think so. If you want the lights to stay on without costing you an arm and a leg, this guy has just got to go.

    Other reading:
    Bobby Godsell on why he resigned.
    Eskom saga a 'complete disaster'.
    Last edited by Dave A; 10-Nov-09 at 09:22 AM.
    The trouble with opportunity is it normally comes dressed up as work.

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    Moderator IanF's Avatar
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    I see now that Mr Marogo has resigned.
    Question: Does Maroga get a golden handshake/payout?

    Answer: "Mr Maroga has resigned, there is no golden handshake, he leaves us like any employee that has resigned."
    This from Moneyweb Now is this the second time his resignation has been announced? We now have to see what golden boy Julius has to say about this before it is official.
    Anyway lets hope sanity prevails and we get back to reasonable management so that they have the nous to run a complicated business like ESKOM.
    Only stress when you can change the outcome!

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    Site Caretaker Dave A's Avatar
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    It really sounds like it must have been one of those stormy board meetings where someone tries the "If you're not going to do it my way, I offer my resignation" gambit. The intention wasn't to resign but to force an issue.

    Well guess what? The board accepted the offer to resign and really do want to see Moroga gone, by the looks of things.

    In all honesty, reading that Business Report story, it doesn't take much understanding of what makes an effective business work to realise that Mr Moroga really did need to go.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member sterne.law@gmail.com's Avatar
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    Constructive Dismissal - HUH! If Parastatals paid cognisance to any Labour Legislation and good governance they would have no employees...they would all be fired for POOR work performance(although I could argue that if you are not doing work it cannot be poor)
    I have no idea how he would even consider a poor work performance claim - this comes about when the employer treats you badly - Go figure???!!!
    More accountability from the CEo's in charge of government parastatals and the like. We are the shareholders yet no one listens to our demands to remove the bungling idiots from the board - this does not happen in real business.

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    Site Caretaker Dave A's Avatar
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    The constructive dismissal angle came from an early report that he was told if he didn't resign he'd be fired. In the end this wasn't the case, but obviously if it was...

    It seems like Moroga is definitely gone now - although after the events of the last week, who knows for absolutely sure.
    The trouble with opportunity is it normally comes dressed up as work.

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    Moderator IanF's Avatar
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    Just trying to understand what happened around the fringes is what is puzzling me. But it is in the political realm which is always murky.
    Only stress when you can change the outcome!

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    Although its the most difficult to prove, Constructive Dismissal is the most common dismissal taking place today. Marogo would have to prove, beyond doubt that a Constructive Dismissal had taken place. At this stage it looks like a "his word verses their word (plural on the latter)" situation. With nothing in writing he would have to prove the minister or board held his hand while forcing him to sign his signature.

    In Constructive Dismissal your employment must be made so that it would be impossible to continue working under the circumstances created for you.

    At Eskom, for instance, all the positions that can claim the circumstances impossible to work under can only be attributed to the fact that it was created by themselves. How do we prove this? Notify the CCMA that you have well over 1 000 000 witnesses who are suffering due to the situation created within the parastatal. The case would be dismissed immediately.

    Eskom has created many artisans over the years. Many have left SA for "greener pastures". We all know the workings at ground level.

    The ANC knows what is Poor Working Performance. Why should Eskom be any different?

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