Eskom: ‘27 black execs spurned SOE’
Board asked business leaders to apply for job. They all said no
● As many as 27 top black executives were approached to apply for the job of Eskom CEO, but all declined.
The Sunday Times understands that Eskom’s board drew up the list and tasked a recruitment agency to approach them.
“All of them said no. A lot of black executives don’t want anything to do with stateowned entities. They feel there’s too much political interference,” said a government insider with knowledge of the process.
Two of those approached were board members, Nelisiwe Magubane and Sifiso Dabengwa. Neither gave specific reasons for declining. Among others approached were former CEO Jacob Maroga.
Another former CEO, Tshediso Matona, said he was not approached. “I have long closed that chapter of my life,” he said.
Eskom told the Sunday Times that Magubane and Dabengwa declined to comment because the recruitment process was confidential. Maroga could not be reached for comment.
Another insider said it became clear to the board early on that qualified and experienced black executives with impeccable reputations were not keen on the job.
“SOEs have ruined a lot of careers and reputations. It’s where careers go to die, and a lot of black executives are saying no to them. Eskom, as the apex SOE, is even worse, they won’t touch it,” said the insider.
This week’s appointment of Nampak CEO
André de Ruyter as Eskom CEO sparked accusations of reversing transformation.
Irvin Jim, general secretary of Numsa, said it was a setback for transformation.
“This is an insult to blacks and Africans in this country, that — to date — since the democratic breakthrough, we do not have competent black women and black Africans who can occupy such a position,” said Jim.
Numsa represents workers at Nampak and Jim is said to have butted heads with De Ruyter.
The EFF decried the appointment as a “racist project by public enterprises minster Pravin Gordhan to undermine Africans”.
Those with inside knowledge of the process said De Ruyter had performed extremely well during interviews and came up top in the assessment processes.
He is said to have prepared a presentation that explained his approach to the unbundling process, how to restructure the debt, and deal with Eskom’s bloated employee numbers.
The shortlisted candidates for the position were De Ruyter, Andy Calitz, Ben Magara, Brian Kennedy and Dan Marokane. Magara, who is a former CEO of platinum miner Lonmin, later withdrew.
The insider said three names were recommended to Gordhan for a final selection by the cabinet. These were De Ruyter, Calitz and Marokane. In all the assessments, De Ruyter came out on top, with the board recognising his vast experience in the energy sector, gained during a stint at Sasol.
Gordhan is said to have briefed the ANC deployment committee and the cabinet on why the Nampak CEO was the right candidate for the position. Both structures endorsed De Ruyter afterwards.
Gordhan’s spokesperson, Sam Mkokeli, said the minister regularly spoke to colleagues in the ANC about his government tasks. He referred all queries to the ANC.
An ANC insider said the party did not understand the fuss about De Ruyter’s appointment, given that he had been endorsed by the board, the party and the government.
“His name went from the Eskom board to the minister, to cabinet and the deployment committee. They all endorsed De Ruyter, that’s why the party immediately issued a statement supporting his appointment. This is not about race or transformation. Eskom is in trouble, it needs the best person for the job,” said the party insider.
ANC spokesperson Pule Mabe said the party would not comment on what was discussed in the deployment committee. “The workings of the deployment committee remain internal,” he said.
De Ruyter, who is an expert in restructuring, will execute a five-year plan that includes moving 15,000 of Eskom’s 46,000 employees to a separate entity and shifting part of its R450bn debt to the National Treasury.
“He’s not going to fire people,” said the insider.
Eskom is being unbundled into three entities, handling generation, transmission and distribution.