This comes after the Supreme Court of Appeal last week ruled that Modise had failed in his fiduciary duties.
THE NATIONAL Energy Regulator of SA (Nersa) has asked its chairperson Jacob Modise to step down following a board meeting held last week to determine his fate.
This comes after the Supreme Court of Appeal last week ruled that Modise had failed in his fiduciary duties after he, as chairperson of Tladi Holdings some years ago, appropriated an empowerment transaction that the company was pursuing.
In a statement, Nersa said that it had considered the judgment in the matter between Modise and his investment firm Batsomi Power, against Tladi Holdings, to ascertain the potential impact of the judgment on Nersa’s reputation.
Modise is also the executive chairman of Batsomi Investment Holdings, a black economic empowerment group he founded in 1998, that has investments in the industrial, technology, defence, motor, hospitality, power and health care industries.
Nersa said it had also considered Modise’s conduct regarding his failure to apprise the energy regulator of the judgment as it only got wind of the matter from the media.
“After careful consideration and deliberation on articles and the submissions made by Mr Modise and evaluation of the potential reputational damage on Nersa, the energy regulator resolved to request Mr Modise to voluntarily step down as the chairperson of the energy regulator while his engagement with the Minister of Mineral Resources and Energy, as he reported, on this matter is in progress,” Nersa said.
“The energy regulator further resolved that, in the meantime, the deputy chairperson, Ms Maleho Nkomo, becomes the acting chairperson of the energy regulator until Mr Modise has completed his engagement with the Minister.”