Look at those over 60s, Gordhan reportedly tells Eskom on CEO search

The appointment of a new CEO at Eskom has again been delayed. This time by a dispute over the age of the prospective candidates. 

According to a Business Day report, citing a leaked letter from public enterprises minister Pravin Gordhan to Eskom’s chairperson Mpho Makwana, the board should consider candidates over the age of 60 in its efforts to replace former CEO Andre de Ruyter.

De Ruyter left Eskom with immediate effect in February. Former Chief Financial Officer Calib Cassim is the acting CEO.

Golden oldies

Initially, prospective candidates over the age of 60 were excluded. 

“The board previously informed me that the candidates that were above 60 years of age were not considered for the vacant position of GCEO of Eskom. I therefore suggest that the board consider including candidates above 60,” reads the letter. 

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“I understand that Eskom’s condition of service makes provision for permanent employment up to the age of 65. After the age of 65, there is a provision for further employment in a temporary capacity as a fixed-term contractor. However, I understand that the GCEO is not a member of the pension fund, and the age limit of 65 years doesn’t apply.”

No specific law regarding retirement

According to the labour laws of South Africa, there is no specific law that provides, in general, at what age a person must retire. 

The laws relating to persons who are members of the Government Employees Pension Fund state an employee can retire at 55, 60 or 65 years.

If a person is not a government employee, the ordinary retirement age is 60 or 65 years of age. An employee cannot be forced to retire, unless their employment contract has a condition where they must retire at a certain age, or a rule sets the date of retirement. 

Gordhan rejects recommendations

Last week, Gordhan rejected recommendations from the power utility’s board because it shortlisted one candidate instead of three. 

Gordhan’s spokesperson Ellis Mnyandu confirmed this and noted the shortlisting requirement was part of Eskom’s Memorandum of Incorporation.

DA MP Ghaleb Cachalia said sending the Eskom board back to the drawing board on the appointment of a new CEO created a “justifiable suspicion” the ANC cadre deployment committee was trying to hijack the process to appoint a cadre approved by Luthuli House.

READ MORE: DA blames ANC cadre deployment committee for Gordhan rejecting Eskom CEO recommendation

Cachalia said Gordhan was hiding behind Eskom’s Memorandum of Incorporation to justify his refusal to consider the recommendation made by the Eskom board. 

He said it would not be shocking if De Ruyter’s substitute was an ANC candidate. 

“Considering the ANC’s storied history of interference and corruption at Eskom, it will be hard news if it turns out the ANC’s cadre deployment committee has decided to insert itself into the process to find a new CEO for Eskom. After all, this is the same party that deployed the likes of Matshela Koko and Bryan Molefe to the entity, only to leave it reeling under state capture and institutional collapse.”