Eskom a step closer to getting new CEO
A shortlist of three candidates has been drawn up for a final decision by the cabinet
The restructuring of Eskom is gathering momentum slowly with the board on track to recommend three CEO candidates and a commitment from public enterprises minister Pravin Gordhan to deliver a roadmap for the group before the end of October.
The restructuring of Eskom is slowly gathering momentum with the board on track to recommend three CEO candidates and a commitment from public enterprises minister Pravin Gordhan to deliver a roadmap for the company before the end of October.
The task of the board was to select a shortlist of candidates to be handed to Gordhan who will take it to the cabinet for a decision.
The selection process has been finalised.
While industry circles have been awash with rumours of the names of those shortlisted, none of the candidates would confirm their status.
The choice promises to be a difficult one for the cabinet, which will need to balance skills and experience with the ability to navigate the difficult political environment.
The ability to contend with these dynamics, garner political support and drive the restructuring seen as key to Eskom’s future sustainability make the position one for which several accomplished energy executives have declined to apply, despite being urged to do so in the interests of the country.
The appointment of a new CEO will be the first sign of demonstrable progress in the restructuring of Eskom. Investors who hold most of Eskom’s R450bn debt have been concerned about the lack of urgency by the government to fix Eskom, which is acknowledged as the single biggest risk to SA’s economy.
The government has made little progress since President Cyril Ramaphosa announced in February that Eskom would be split into three parts dealing with generation, transmission and distribution.
Phakamani Hadebe resigned as CEO in May, saying the role came with “unimaginable demands which have unfortunately had a negative impact on my health”.
Chair Jabu Mabuza, acting CEO since August 1, set a firm deadline of the end of October for the appointment of a CEO.
Gordhan said the “Eskom paper a roadmap for the unbundling of Eskom which he had previously promised would be completed by midSeptember, was now expected “before the medium-term budget policy statement”, scheduled for October 30.
A failure to present a credible plan to address Eskom’s operational and financial crises and which also indicates how much relief the government will have to give the company would be disastrous for SA’s standing with investors.
Moody’s Investors Service, the only credit ratings agency that still rates SA debt as investment grade, has indicated that a credible plan for Eskom is essential to its decision on whether it will change its outlook on SA come November.
THE CHOICE OF A NEW CEO PROMISES TO BE A DIFFICULT ONE FOR THE CABINET
A ROADMAP FOR THE UNBUNDLING OF ESKOM IS NOW EXPECTED BEFORE OCTOBER 30