Former information official sues power utility for R100m

ESKOM is facing a R100-million lawsuit from its former chief information officer, adding to its woes.

Virgil Rabie, 54, launched a multimillion-rand lawsuit against Eskom in September for loss of future earnings, pain and suffering and legal fees after he was fired in May 2011.

Although Eskom succeeded in having his particulars of claim set aside as "vague and embarrassing" and/or for not disclosing a cause of action in October, the Johannesburg High Court has given Rabie a chance to amend it.

According to a Johannesburg Labour Court judgment in 2011, Rabie, who worked for Eskom for four years, was dismissed for misconduct relating to failure to disclose his interests in terms of his employer's policy.

Eskom said last week that Rabie was dismissed for "committing various misconducts", but would not elaborate.

However, Rabie said the real reason for his dismissal was that Eskom had accused him of failing to declare he knew an IT contractor who was hired at Eskom, allegedly on Rabie's recommendation.

Rabie said the contractor was, in fact, already working at Eskom when he was hired.

Rabie headed to the Commission for Conciliation, Mediation and Arbitration and reached a settlement with Eskom, in terms of which he was awarded R700000 – six months' salary.

He now wants the settlement agreement cancelled, saying he realised after new information came to light in 2012 that he was "shrewdly connived" into signing the deal.

He said Eskom relied on a short report by professional services firm EY (formerly Ernst & Young) during his disciplinary hearing, but a full version of the report, which came to his attention, exonerated him and proved others had transgressed the policy but had not been fired.

Rabie accuses Eskom and EY of colluding to omit the full report.

Rabie also said top managers at Eskom, including group executive for sustainability Steve Lennon and former chief financial officer Paul O'Flaherty, had hired friends, without any consequences.

Eskom denied the claims.

Rabie is suing for R96-million for loss of earnings for 15 years, R1-million for pain and suffering and R3-million for legal fees.

"I will never settle, no matter what they put on the table."

Rabie has also laid criminal charges of perjury and defeating the ends of justice against EY.

EY business writer Mpho Lukoto said the company could not comment on the matter due to client confidentiality. - Penelope Mashego