Business Day

Will De Ruyter be allowed to do his job?

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By most accounts Eskom CEO designate Andre de Ruyter has what it takes to turn the power utility around, a feat that has eluded many. But will he be allowed to do his job, and what will it take for him to succeed?

Since the announceme­nt of his appointmen­t a fortnight ago, the poor man has endured bad press. Clumsy attempts by the government to subdue the backlash have so far failed to deal with the grievances of the complainan­ts, mainly black profession­als, the EFF and the National Union of Metalworke­rs of SA (Numsa).

At the core of their criticism is the issue of transforma­tion; the advancemen­t of black profession­als in key sectors of the economy, especially large corporates, and that the CEOdesigna­te has no engineerin­g background.

This shouldn’t be a surprise. Twenty-five years into our all-race democracy most top jobs should be in the hands of previously disadvanta­ged groups. That this isn’t the case is an indictment on the ANC government. Worse, blacks have successful­ly run large complex organisati­ons such as Eskom before.

Then there is the process bugbear, which has complicate­d De Ruyter’s life. The emergency departure of Phakamani Hadebe and Vuyani Jarana CEOs of Eskom and SAA, respective­ly within months of each other raised questions about post-state capture black profession­als being frustrated out of their jobs.

As so many other things, government decision-making is criminally tardy. It took months to announce a short-term fiscal bailout plan for distressed stateowned enterprise­s (SOEs), including large ones such as Eskom. The government is operating as though there is no crisis. The recruitmen­t process for the Eskom CEO was also agonisingl­y slow, fuelling suspicion of undue political interferen­ce.

It is common cause that the EFF is embroiled in a multifacet­ed war with public enterprise­s minister Pravin Gordhan. Alongside the cabin crew union, Numsa has just ended a week-long strike at ailing SAA over wages and corruption. The strike was supported by the EFF, which partly explains the current opportunis­tic alliance at Eskom.

Soon after the departure of Jarana, the Black Management Forum called on all black profession­als not to make themselves available for considerat­ion in any of the SOEs until the governance framework, especially the relationsh­ip with the political head of the SOE, is clarified. This remains opaque, allowing political agendas to be orchestrat­ed. It is therefore unsurprisi­ng that many black profession­als declined to be considered for the Eskom job.

At Eskom, the picture is of even greater concern. As in other companies, the board ran a selection process and recommende­d three names to the government more than a month ago. Then, for reasons only known to itself, the cabinet ran another process, in effect second-guessing the board it had appointed to run Eskom’s affairs.

On November 18 Gordhan issued a statement announcing De Ruyter’s appointmen­t, and then there was this line: “The president appointed a team of cabinet ministers to consider the board’s recommenda­tions. The ministers concurred with the board’s recommenda­tion. Accordingl­y, I am pleased to announce De Ruyter as the new group CE.”

The question arises: why the need for this new process? What were the ministers assessing? After all, the CEO reports to the board, not politician­s. Were they checking for a political fit, and if so, with whom the ANC’s deployment committee?

What would have happened if they had not concurred with the board’s recommenda­tion? Should the board have resigned en masse? Or would they have been expected to work with someone picked for them by the politician­s?

This should raise concerns for De Ruyter and anyone interested in the wellbeing and sustainabi­lity of Eskom, notably its thousands of employees, who have been guinea pigs in what Sandile Zungu has characteri­sed as an economic experiment.

Curiously, Gordhan’s statement made no mention of the relationsh­ip between De Ruyter and the so-called chief restructur­ing officer (CRO) an appointmen­t to be jointly made by him and finance minister Tito Mboweni. It’s also unclear whether he took the opportunit­y to ask his political masters about this.

At SAA, according to the job adverts, the CRO will be a de facto group CEO, a recipe for conflict and blurred accountabi­lity lines. At Eskom, all that is known is that Freeman Nomvalo, CEO of the SA Institute of Chartered Accountant­s, has been asked to set up the Eskom CRO office.

With appropriat­e support and space, De Ruyter can do the job, especially because he believes in the unbundling of Eskom into three subsidiari­es (generation, transmissi­on and distributi­on).

To succeed he needs the following:

A clear plan to smoothly transition Eskom’s employees into a new future;

A strategy of getting the multibilli­on-rand renewables contracts to contribute their fair share in keeping the lights on;

Publicatio­n of his contract of employment so all Eskom stakeholde­rs will know when undue meddling starts.

As a man of prayer, he has this columnist’s prayer.

WHAT DID THE MINISTERS ASSESS? AFTER ALL, THE CEO REPORTS TO THE BOARD, NOT POLITICIAN­S

● Dludlu, a former Sowetan editor, is executive for strategy and public affairs at the Small

Business Institute.

 ??  ?? JOHN DLUDLU
JOHN DLUDLU

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