Eskom CEO’s fate lies with new board, says Mabuza

Deputy President David Mabuza says it is entirely up to Eskom’s new board to decide whether the power utility’s CEO Andre De Ruyter is suitable for the position or not.

National Assembly Q&A

Mabuza was answering questions in the National Assembly, and said the board’s mandate was based on an existing shareholder agreement.

He highlighted that because of the load shedding crisis and other changes in the electricity supply industry, this agreement will be relooked at.

Newly appointed board to decide

“So, it is up to this newly appointed board to re-evaluate the performance of Eskom’s Chief Executive and other members of Eskom’s executive management and, if needed, send their suggestions to the shareholder representative.”

“The board will also focus on problems with power generation and other energy-related issues like procurement, hiring former and experienced Eskom workers, and fighting fraud and corruption,” Mabuza added.

According to Mabuza, the government’s commitment to good governance will be reflected by a competent, experienced and capable board that has been chosen to set up clear mechanisms to hold the executives accountable.

“It is our expectation that the board is empowered to run the affairs of Eskom in a diligent manner and adopt zero tolerance for poor performance, corruption, abuse of power, dishonesty, and conflicts of interest whenever such arise.

“This includes actions that try to undermine our efforts to build an energy utility that is financially stable and geared toward meeting its development imperative.”

Load shedding impact

He also said that the government fully recognised the negative impact of load shedding on the country’s economy and the inconvenience and hardship it causes the country.

“As a result, government has been working with the energy sector to remove a cap on private generators, increase the number of request for proposal issued to the private sector, and contract for more megawatts from existing independent power producers.

“Updated regulations allow municipalities to procure power independently. Eskom would also buy surplus power from existing producers like mines, factories, malls, and other private generators”, Mabuza said.

“Eskom will also import additional power from neighbouring countries through the Southern African Power Pool arrangement.”

ANC gunning for Ruyter

Meanwhile, ANC leaders in KwaZulu-Natal and Limpopo have called on President Cyril Ramaphosa and Eskom’s board to fire the parastatal’s CEO.

“The problem is André de Ruyter. They should have fired André de Ruyter and once they fire him, they will get someone who knows how to run this thing [Eskom]… and then we will have no problem in the country,” the ANC KZN provincial office said this week.

ALSO READ: ANC leaders from KZN, Limpopo call on Ramaphosa to fire André de Ruyter