S. African Eskom CEO to resign after state capture scandal

Brian Molefe, the scandal-hit CEO of South Africa's electricity utility Eskom, announced on Friday that he would resign but denied any wrongdoing.

"I have, in the interests of good corporate governance, decided to leave my employ at Eskom from 1 January 2017. I do so voluntarily," Molefe said in a statement.

Molefe will be the first CEO at state-owned companies to resign since the state capture report was released on November 2.

The report, compiled by former Public Protector Thuli Madonsela, sheds light on how the wealthy Indian Gupta family used their close relationship with President Jacob Zuma to influence the appointment of cabinet ministers and CEOs of state-owned enterprises, including Eskom, weapon manufacturer Deniel and the South African Airways (SAA).

According to the report, several CEOs of state-owned enterprises met with senior members of the Gupta family before being appointed by Zuma. Molefe is implicated in the report.

In his Friday's statement, Molefe lambasted the state capture report which he said did not make any findings but what were termed "observations" based on an investigation not completed.

"Observations" made in the report relating to his conduct "are in material respects inaccurate, based on part-facts or simply unfounded," Molefe said.

"I am confident that, when the time comes, I will be able to show that I have done nothing wrong and that my name will be cleared," he said.

Molefe said his announcement to resign was not an admission of wrongdoing but rather what he feels to be the correct thing to do in the interests of the company.

First appointed in an acting capacity in March 2015, Molefe is credited with successfully turning cash-strapped Eskom around.

Eskom, which provides more than 95 percent of electricity consumed in South Africa, was blamed for massive blackouts that lasted for more than one year before Molefe became Eskom CEO. Endit