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AfrElec ESKOM AfrElec

South Africa announces new Eskom

board amid worsening crisis

SOUTH AFRICA SOUTH Africa’s cabinet has approved a new Jan Obelhozer’s axing. The board is expected to
board of directors at the struggling state-owned review their performance as well as that of the
power utility Eskom. The announcement on entire management, the minister said.
September 30 came amid mounting pressure on Black Business Council (BBC) chief execu-
the government to fire chief executive Andre de tive Kganki Matabane said the previous board,
Ruyter over the country’s worsening electricity chaired by Malegapuru Makgoba, had failed to
crisis, Independent Online (IOL) reports. hold the management to account.
Public Enterprises Minister Pravin Gordhan “The BBC is convinced that the new board
said the new 13-member board will be chaired is balanced, appropriately skilled, has gravitas,
by Mpho Makwana, who had previously served possesses the necessary diverse experience and
as Eskom non-executive director between 2002 will have the capacity and courage to hold man-
and 2011. The executive directors will be the agement accountable,” Matabane said as cited by
current CEO, Andre de Ruyter, and the chief IOL.
financial officer (CFO), Calib Cassim, he said in “The BBC would like to advise the new
a statement. board that their first responsibility and task is to
“The new Board brings broad experience, release the incompetent CEO and COO, as they
expertise and skills that will provide stability and have plunged the country into darkness, which
strategic direction to the entity. Their task will has paralysed the country and its economy,” he
be to reposition Eskom to play a key role in the added.
energy sector,” Gordhan said. Eskom has struggled to meet electricity
According to the statement, the incoming demand in Africa’s most industrialised nation
Eskom board is expected to resolve the imme- for more than a decade, writes Reuters. President
diate current load shedding problem, as well Cyril Ramaphosa has been trying to reform the
as procurement and corruption issues, and to state power company since becoming head of
ensure the reliability of energy supply in the state in 2018. However, his administration has
medium to long term. made slow progress, fuelling public frustration.
The business industry has welcomed Eskom’s The finance minister Enoch Godongwana
new board of directors with cautious optimism, is expected to outline government plans to
saying that while it is balanced, the power utility’s deal with Eskom’s roughly ZAR 400bn ($22bn)
management may still need an overhaul, writes debt burden at next month’s mid-term budget.
IOL. According to Godongwana, the government has
Speaking at a news conference following the agreed to take on some of Eskom’s debt, but the
announcement, Gordhan said it would be up question remains how much of it the state could
to the new board whether it heeds the calls for absorb, says Reuters.™
De Ruyter and chief operating officer (COO)

P6 www. NEWSBASE .com Week 40 06•October•2022