Eskom to name new CEO soon

Debt-laden Eskom has narrowed its search for a new CEO as the government finalises a plan to rescue the business.

The measures are key in a state effort to overhaul what’s seen as the biggest threat to South Africa’s economy: the company has amassed R450 billion of debt, equivalent to about 7% of gross domestic product.

Both are expected to be finalised next month.

The deadline for the announcement of the CEO is October 31, while Public Enterprises Minister Pravin Gordhan said this month the rescue plan would be announced within weeks.

Eskom has been looking for a new CEO since Phakamani Hadebe in July became the 10th person to vacate the post in as many years. Chairperson Jabu Mabuza took on the role in an acting capacity until a permanent appointment is made.

Andy Calitz, who started his career as an electrical engineer at Eskom, is one of three people shortlisted to become the next CEO, according to two sources familiar with the process, who declined to be identified because the information isn’t public.

Another is former CEO Jacob Maroga, one of the sources said. They didn’t identify the third person on the list.

Dan Marokane, Eskom’s former head of group capital, is among people who applied for the job, another informed source said last month. Eskom, which supplies about 95% of SA’s power, has been granted R128 billion in state bailouts over the next three years to remain solvent.

The government has proposed splitting the utility into generation, transmission and distribution units and is evaluating a range of options.

The department of public enterprises yesterday declined to commit to a date for the paper’s release.

“We will announce it at the appropriate time,” said Richard Mantu, a department spokesperson.

Applications for the CEO position closed on August 2. Government will ultimately make the appointment. –Bloomberg

We will announce it at the appropriate time.

Richard Mantu Department of public enterprises