The People's Board Lives

Special Announcement from 'The People's Board',

We have all been asking for months now (well really years) for some transparent information before the AGM. There is far too much silence on pressing matters, that can no longer be pushed under the table.

Question: What is happening with our finance syndicate...

Answer: ……..Crickets! 

What I know

1. We have not been informed about the lending syndicate,who the parties are, or what the backup plan is if this syndicate includes NOBLE(please tell me the board didn't consider NOBLE).

2. In June next year. We do not know the cash-flow plan!

3. Noble is in the papers, again, and not for good reasons.The outcome of this is not expected until the 11th December 2018. (Refer Business Times - Singapore, Nov 25. 2018).

4. Our delays seem to coincide with Noble's delays.

5. Since we declined to utilise the funders in 2016.We have had many years to come up with other notable funders. Are there  conflicts of interest as outlined in the article below*?

6. An alternative pathway, could have, and should have been sourced. OR Are we waiting for the last hour to help maintain key relationship swithin major stake holders of PIC, IDC, DBSA, and now Eskom.

 

Eskom and Transnet just received the green light for funding from China, surely this could be seen is good, or is this just an opportunity for our ‘Real Board’ to fail and sell to ESKOM or TRANSNET for some loose change?

The key conflicts of interest to consider with the source being David Hallows in the Daily Maverick on the 21 Nov 2018. This is a very negative view,and in some parts a little inaccurate. But to absorb all angles. It is worth the read.

Meanwhile,according to Resgen, the Industrial Development Corporation (IDC) approved aR540-million loan in April this year subject to various conditions. The IDC itself lists an amount of R1-billion – which leaves a R460-million question hanging. In 2017, the Development Bank of South Africa (DBSA) promised funding for the rail link, although this appears to have lapsed as Resgen is once more“in talks” with possible funders. It is a condition of the IDC loan that funding for the rail must be secured.

These public sector loans and investments appear to be nested in conflicts of interest. The IDC has listed the “prominent influential persons” who are beneficiaries of the deal. They include: Jabu Mabuza who was appointed Chair of Eskom’s board in January 2018; two people from the Land Bank’s board where Eskom CEO Phakamani Hadebe is a former CEO; one person from the board of theDBSA; nine members of the PIC board – all but two of the 11-person board –including CEO Dan Matjila and Chief Finance Officer Matshepo More; and former deputy finance minister, and hence former PIC board chair, Sifiso Buthelezi.

Course of Action

Time for the 'real board' to provide a real course of action.

Let's state the obvious, we require someone with a real shareholding on the real board to keep our leaders accountable! 

There is a couple of significant individual shareholders in the top ten list, that are quite capable to take on a role. I think it's time!

Question for you All

Statement: In the event that things don't go as planned, what is our alternative pathway. I do not agree with making alternative solutions after each failure, but let's run ideas in conjunction with proposed ideas. All plans should be tabled ASAP. Let’s not give our mates from ESKOM, Noble or any other party an opportunity to come in like vultures.    

Question: Who should take responsibility for this lack of forward planning we have seen in previous months, the 'Directors on the board' or the 'Executive Management' or are the 'Shareholders are partly responsible - as we have the final vote'? 

So, to uphold my full disclosure; I now hold 7.4M shares, so, although this may be a negative post for RES. I am attempting to show both sides of the coin as they are presented. I currently have a 200,000BUY order sitting in queue. 

 

All good questions deserve good answers. It’s time for some answers ResGen!

Either way, we have been patient, we have put up the money, we have asked the right questions many, many times, and we have been very polite, and finally, we do deserve some answers!

The Former and now Retired Peoples Chair of ‘The People’s Board’  (TF&nRPCoTPB)