Eskom backs down on cuts

Eskom chair and acting chief executive Jabu Mabuza has put his weight behind the appointment of Andre de Ruyter as its new chief executive, saying he was not a surprise candidate but the right person for the job.

The announcement of De Ruyter as the man who will take the wheel at Eskom as it puts its turnaround strategy into gear was met with criticism from unions. It was also met with general surprise, as the outgoing Nampak CEO had not been touted as a candidate in media reports.

Speaking at the utility’s interim results presentation on Thursday, Mabuza said De Ruyter’s appointment came after a credible and thorough process.

Lightly joking about the number of people who applied for the post, Mabuza said Eskom would have not been able to employ all 142 applicants, who ranged from school leavers to 75-year-olds and “any and everything in between”.

Mabuza was part of the board that interviewed the final six candidates. Four were white and two were black.

These candidates were not listed in media reports, which speculated that the job could go to former Eskom CEO Jacob Maroga, energy expert Thembani Bukula or former executive Dan Marokane, with the preferred candidate being Andy Calitz, former CEO of LNG Canada.

“The so-called surprise is because there was no leak,” said Mabuza. “Commentators had their own list and were surprised when we did not use their list to choose the three we recommended.”

The issue with De Ruyter extends beyond him being a surprise candidate, with many calling into question his tenure at packaging company Nampak, which has seen its share price decline by more than 80% since he took over in 2014.

On Nampak’s performance, Mabuza said although a company’s share price was an important indicator, it is not “the only indicator”.

He said many South African companies had lost a third of their value in one year for doing business in markets that Nampak went into before De Ruyter was appointed.

“We also want to assure you that we are satisfied as the board of Eskom and are very grateful that the shareholder [government], having followed its own rigour, had come to the same conclusion that Andre de Ruyter is the most suitable, available and willing South African to take this job.

“I would like to plead with all South Africans, that not only does Andre need all the support he can get, he needs the space and the time to lead us out of all these challenges that are facing us,” Mabuza added.