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\nNuclear storm brews as board tries to oust energy chief<\/a><\/p>\n
But Joemat-Pettersson ignored their pleas this week by extending Tshelane\u2019s contract \u201con [a] month-to-month basis \u2026 until further notice\u201d. Tshelane\u2019s three-year contract as Necsa chief executive was set to expire on Friday July 31.<\/p>\n
Looming large over these latest\u00a0developments is government\u2019s R1-trillion nuclear new-build \u00adprogramme led by the energy department. The department had said that it would launch the procurement \u00adprocess by the end of July.<\/p>\n
Billed as the most expensive project in South African history, it has\u00a0 raised concerns among energy experts<\/a> for its perceived unaffordability and potential to saddle the country with enormous debt and above-average electricity prices for decades to come.<\/p>\n Justifying her decision to retain Tshelane, Joemat-Pettersson wrote to the board on Tuesday, saying that, \u201cin light of the pivotal role Necsa is playing in the nuclear new-build\u00a0programme, it is important to maintain stability and continuity in this organisation during the \u2026 procurement process\u201d.<\/p>\n Suitability questioned They wrote to the minister: \u201cThe nuclear industry is one that prides itself in transparency, especially when it comes to compliance, safety and financial accounting.<\/p>\n \u201cThe very future of nuclear in South Africa depends on these pillars to assure that nuclear energy should not be feared, but embraced.<\/p>\n \u201cThe actions and conduct of the CEO \u2026 have trampled these very values and made a mockery of the government\u2019s efforts to ensure a world-class nuclear industry, in preparation of the planned nuclear new-build programme.\u201d<\/p>\n But Joemat-Pettersson strengthened Tshelane\u2019s position this week by also recalling one of her nominees to the board. Department official Jeetesh Keshaw had fallen in with the small but vocal board majority that has been gunning for Tshelane, and has now been replaced.<\/p>\n This is not the first time that Joemat-Pettersson has shielded Tshelane.\u00a0 AmaBhungane has reported how<\/a>, in December last year, she told the board to open disciplinary proceedings against him on\u00a0several charges but later recanted and instead launched her own inquiry into the board.<\/p>\n ‘Applying her mind’ The board may also have overplayed its hand by issuing Tshelane and chief financial officer Zakes Myeza with letters of summary dismissal over the annual audit.<\/p>\n However, following the minister’s intervention, the letters were never delivered.<\/p>\n The Nuclear Energy Act gives the minister the power to hire and fire chief executives of state-owned companies allocated to her and she is likely to contest the board\u2019s power to exercise this right concurrently.<\/p>\n The audit trail\u00a0Tshelane wrote to auditor general Kimi Makwetu this week to protest about his auditors\u2019 handling of\u00a0the audit.<\/p>\n It remains to be seen whether Makwetu will now modify the disclaimer.<\/p>\n The board audit committee\u2019s concerns, which amaBhungane has seen in writing, included:<\/p>\n But in his letter to the auditor general, Tshelane complained that \u201cbasically the auditors have not had time to audit and apply their minds sufficiently to arrive at a well-considered audit opinion\u201d.<\/p>\n The chief executive took issue with the \u201cinconsistent treatment [by the auditors] of the liabilities associated with decommissioning and decontamination\u201d and the \u201cenormous amount of time and effort spent unnecessarily in this area\u201d.<\/p>\n Flatly denying that Necsa had refused the auditors access to information, he lectured Makwetu: \u201cIt is inconceivable that auditors can spend more than three months applying resources to audit and not be able to satisfy themselves with audit evidence.\u201d<\/p>\n * Got a tip-off for us about this story? Email [email\u00a0protected]<\/a><\/em><\/p>\n
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\nBut the board members are similarly mindful of the impending nuclear programme, and question Tshelane\u2019s suitability to perform a key role.<\/p>\n
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\nJoemat-Pettersson\u2019s inquiry is now complete. She told the board this week she is \u201capplying her mind\u201d to its findings.<\/p>\n\n
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