The protracted search for Eskom’s next CEO has raised tensions between public enterprises minister Pravin Gordhan and its board, according to people familiar with the matter.
André de Ruyter announced his resignation as CEO nine months ago, yet a permanent replacement hasn’t been named despite an ongoing energy crisis that is taking an ever-increasing toll on the economy.
A candidate put forward by the board was rejected by Gordhan, News24 reported on Wednesday.
The board and its chairman, Mpho Makwana, have become frustrated that the selection process has been delayed because of demands from the minister, said one of the people who asked not to be identified because the matter isn’t public.
Some board members threatened to quit in the coming weeks if Gordhan rejects their recommendation, another person said.
In May, the board forwarded the name of one of four frontrunners for the CEO post to the government, instead of three as required, News24 said, citing Ellis Mnyandu, Gordhan’s spokesman. Gordhan and Eskom didn’t immediately respond to a request for comment. In March, Makwana said there was a “rich” choice of candidates.
Behind schedule
South Africa has been subjected to record power cuts that are implemented to prevent a complete collapse of the grid as Eskom struggles to meet demand from its old and poorly maintained coal-fired plants. The government has vowed to end the outages, with President Cyril Ramaphosa appointing an electricity minister to drive its response to the crisis.
De Ruyter abruptly left Eskom in February after the airing of a television interview in which he linked ANC officials to widespread corruption at the company. His position has been temporarily filled by chief financial officer Calib Cassim.
Plans to split Eskom into three operating units are also running behind schedule. While the regulator has granted trading and import-export licences to the transmission unit, a number of steps remain before it can become operational. They include the appointment of its board and consent from lenders for its separation into a standalone entity. — Loni Prinsloo and Paul Burkhardt, (c) 2023 Bloomberg LP