Due to cost overruns at the Lake Charles Chemicals Project (LCCP) in the US, Sasol’s joint CEOs, Bongani Nqwababa and Stephen Cornell, have agreed to resign after an independent review into the company’s disastrous US project.

The Lake Charles Chemicals Project (LCCP), which will have seven production units that deliver various chemicals including a plastics variant called polyethylene, will cost between $12.6 billion and  $12.9 billion (R190 billion at current exchange rates) – almost double the original budgeted amount. It has been plagued by delays and technical problems, and has wreaked havoc on Sasol’s share price. The company lost 44% of its value over the past year.

“To be clear, the Board has neither identified misconduct nor incompetence on the part of the joint CEOs,” the company said in a statement on Monday.

A probe into the cost surge at the project had concluded that there had been insufficient experience within the project leadership team in executing megaprojects, and insufficient oversight at the executive level, though no evidence of criminal conduct has been uncovered.

Nqwababa and Cornell, who had taken up their positions in July 2016, have agreed to an “amicable mutual separation” to ensure a culture of accountability, and to restore trust in the group, Sasol said.

“However, it is a matter of profound regret for the board that shortcomings in the execution of the LCCP have negatively impacted our overall reputation, led to a serious erosion of confidence in the leadership of the company and weakened the company financially,” Sasol said.

Stephen Cornell executive vice-president for chemicals, will take up the role of CEO with effect from November 1.

Sasol has twice delayed its financial results for the year to end-June to probe cost overruns at the project.

“I would like to thank Bongani and Stephen for their long and loyal service to Sasol, and for showing exemplary leadership by putting the interests of the company first in agreeing to step down to allow for a leadership reset,” Sasol chairman Dr Mandla Gantsho said.

They – along with Sasol’s executive committee members – will also not receive any short-term bonuses for the past financial year.