The business industry has welcomed Eskom’s new board of directors with cautious optimism, saying that while it is balanced, the power utility’s management may still need an overhaul.
THE BUSINESS industry has welcomed Eskom’s new board of directors with cautious optimism, saying that while it is balanced, the power utility’s management may still need an overhaul.
Pressure has been mounting on the government to fire Eskom CEO Andre de Ruyter over the utility’s worsening electricity crisis, which has plunged the country into various levels – up to Stage 6 – of load shedding.
Public Enterprises Minister Pravin Gordhan on Friday announced a new 13-member Eskom board of directors, including five highly-qualified and experienced engineers.
The board is be chaired by Mpho Makwana, who also serves in a number of positions in other companies.
Makwana previously served as non-executive director of Eskom between 2002 and 2011, serving on the board’s audit committee and its human resources and remuneration committee.
He was invited to serve as Eskom acting chairman and CEO between 2010 and 2011 and managed the power utility’s business and operational matters in November 2009, following the unexpected resignations of the previous chairman and chief executive.
Gordhan said it would be up to the new board whether it heeds the calls for De Ruyter and chief operating officer (COO) Jan Obelhozer’s axings, since he cannot interfere as the shareholder representative.
Black Business Council (BBC) chief executive Kganki Matabane said the previous board, chaired by Professor Malegapuru Makgoba, had failed to hold the management to account.
“The BBC is convinced that the new board is balanced, appropriately skilled, has gravitas, possesses the necessary diverse experience and will have the capacity and courage to hold management accountable,” Matabane said
“The BBC would like to advise the new board that their first responsibility and task is to release the incompetent CEO and COO, as they have plunged the country into darkness that has paralysed the country and its economy.”
National Society of Black Engineers of South Africa (NSBESA) president Mdu Mlaba appeared to support the view that De Ruyter must go.
“Blaming the previous leadership of Eskom will not solve our problems,” Mlaba said.
“We expect the new board to act swiftly to find the new group CEO with the prerequisite technical experience and leadership credentials to take full responsibility to fix the operational challenges at coal-fired power stations and increase the energy availability factor to 75% and above.”
Gordhan also appointed a number of experienced executives to the board, including engineers Busisiwe Vilakazi, Lwazi Goqwana, Eskom’s chief nuclear officer Clive le Roux, chartered accountants Fathima Gany, Ayanda Pearl Zinhle Mafuleka and Tryphosa Ramano, IT specialist Mteto Nyati, electrical engineer Tsakani Mthombeni, lawyer Leslie Mkhabela and auditor Claudelle von Eck.
Former secretary general of Cosatu Bheki Ntshalintshali will represent labour, while Dr Rod Crompton was retained on the Eskom board of directors to ensure continuity.
De Ruyter and chief financial officer Calib Cassim will be the executive directors.
“The new board brings broad experience, expertise and skills that will provide stability and strategic direction to the entity. Their task will be to reposition Eskom to play a key role in the energy sector,” Gordhan said.
“I would like the incoming board to deal with immediate current load shedding issues, procurement, elimination of corruption and ensuring that there is reliability of energy supply in the medium to long term.”
Business Unity South Africa (Busa) said it was very happy with the mix of relevant skills and expertise on the board.
“We have been calling for a board that has the appropriate skills and expertise to provide strategic guidance and direction to the executive, and to hold the executive to account,” said Busa chief executive Cas Coovadia.
“We believe this board, together with the executive, will instil confidence that Eskom will address the critical issues it needs to and play a part in developing an appropriate energy infrastructure in SA.”
– BUSINESS REPORT
