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AG’S Report Exonerates CEF Executives on Unlawful Appoinment Allegations

MEDIA STATEMENT

Attention: News Editors and Journalists
26 January 2022
For Immediate Release

AG’S REPORT EXONERATES CEF EXECUTIVES ON UNLAWFUL APPOINTMENT ALLEGATIONS

Johannesburg-The Board of the Central Energy Fund welcomes the Auditor General’s final management report relating to the appointment of its executives as being lawful. The report
further confirms that all internal recruitment policies and processes were complied with in the appointment of the CEF Group CEO, Dr Ishmael Poolo, Group Chief Operations Officer,
Dr Tshepo Mokoka and Group Executive: Legal Affairs, Ms. Brenda Moagi.

This conclusive finding emanated from a spurious and misleading news article published in the Sunday Times on the 10th October 2021 to deflect attention from real pertinent issues,
purporting that senior CEF executives were appointed without a due process.

At the time when Sunday Times elected to run the story on the 10 October 2021 under a headline: “AG confirms staking of CEF’s C-suite”, the CEF Board had already instituted
an internal forensic investigation to test the veracity of these allegations. Unfortunately, the Sunday Times chose to rely on an inconclusive Auditor General’s management report
findings which were far from the truth and were driven by internal and external forces seeking to undermine the efforts of the GCEO in stabilising the CEF Group.

An independent law firm, MBADA Labour Relations firm was appointed to investigate and advise the CEF Board on whether there are merits into these allegations and if so, guide
the CEF Board on a way forward (i.e. to assist the Board in leading evidence in a disciplinary hearing in the event that any form of consequence management initiatives were to be taken
against the CEF GCEO) and his executives.

The final investigative report by MBADA Labour Relations firm tabled at the recent CEF Board meeting confirmed that these allegations were baseless. Given that there were no
merits on these allegations, the Board has decided not to institute any disciplinary action against the GCEO and his executives. As the CEF Board, we feel vindicated by these
findings which followed relentless engagements with the AG’s office with regards to the inconclusive management report that was leaked to media.

We believe that this unfortunate sensational news reporting by Sunday Times is the regurgitation of an orchestrated smear campaign by disgruntled employees who are hellbent
to de-focus and stall the good work of these executives in their effort to root out corruption within CEF and its subsidiaries.

We have also noted that these leakages could be as a result of the fact that, there are several disgruntled former and current employees whose employment contract were
terminated or are in line to be subjected to disciplinary processes for either corruption, theft, abuse of power, non-performance or malfeasance.

The Board reiterates its position that it will stop at nothing to deal with corruption, nonperformance or malfeasance within the CEF Group and we will not allow the conduct of
disgruntled employees to de-focus us and management in fulfilling our mandate of guaranteeing the security of energy supply for South Africa.

For more information, contact:

Jacky Mashapu
Corporate Affairs Manager
Cell: 081 011 7528
Email: jackym@cefgroup.co.za