Business Leadership South Africa (BLSA) has announced it has suspended the membership of both Eskom and Transnet with immediate effect.
This follows BLSA’s engagement with the two state-owned enterprises in connection with extensive allegations of corrupt behaviour over a long period.
“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,” said BLSA CEO Bonang Mohale.
The business formation stated that neither of the state owned entities (SOEs) were able to give BLSA comfort that they appreciated the seriousness of the issues at hand, or that they had the requisite will and purpose to put their houses in order.
Consequently, BLSA explained it was left with no choice but to suspend Eskom and Transnet’s memberships from the organisation. All members are obliged to live by the values outlined in the organisation’s pledge, with a zero tolerance approach to any organisation found in breach.
BLSA’s reasons for suspending Eskom were mainly motivated by what it regards as “systemic risk to the econony as whole” due to “multiple governance and operational failures and a stretched balance sheet”. BLSA also demanded that a non-conflicted, experienced and permanent chairperson and board members be appointed.
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