André de Ruyter’s legacy at Eskom will remain entrenched in the operations of the power utility long after his exit, as the board of directors indicated that his successor must build on the philosophy he was implementing.
De Ruyter resigned as Eskom Group CEO last week after three years at the helm following political pressure due to his failure to end load shedding amid unprecedented unplanned breakdowns.
However, he will stay on until the end of March 2023 to facilitate a smooth transition with his successor.
Eskom board chairperson Mpho Makwana on Thursday said that the new CEO should be someone who would build on the foundation De Ruyter’s had laid under his philosophy of MEGA, which means “Make Eskom Great Again”.
Makwana said the board had taken on to the notion of MEGA that De Ruyter had been driving at the struggling utility and would want to see it succeed.
“We believe that against this overall thrust of MEGA is also a challenge to ensure that we also future-proof Eskom. And so our view as the board is that future-proofing Eskom means that you’ve got to keep the lights on while you simultaneously embark on a turnaround in terms of the challenges in the generation division,” Makwana said.
“Secondly, we would ensure that as we figure out how to best retain the great talent that we have, but that we also find ways of securing the best technical talent outside.”
De Ruyter - a former CEO of Nampak - had mainly focused on getting Independent Power Producers (IPPs) renewable energy onto the grid, ramping up maintenance of coal-fired power plants, reducing business costs, dealing with corruption and reducing debt.
Makwana also added that Eskom had prioritised securing an executive leader for the generation division following the resignation of acting head of generation Rhulani Mathebula just six months into the post.
He said the human capital committee had been working hard to ensure that together they get to embark on a talent acquisition strategy to secure the best engineers in the market to add capacity to Eskom’s existing talent.
“We, thirdly, as a board, wish to continue putting hands on deck to undo the debilitating and ravaging legacy that State capture has left at Eskom,” Makwana said.
“We will be then securing a chief executive to succeed Mr Andre de Ruyter, who steps down at the end of March.”
De Ruyter’s departure from Eskom caught the markets unawares as he seemed to have enjoyed the support of the new board despite mounting calls for his axing.
However, there were signs that his time was running out as pressure from business organisations, labour movements, and political parties increased with every stage of load shedding Eskom was implementing.
Business Leadership South Africa (BLSA) on Thursday said it was extremely concerned that international support for South Africa’s just energy transition might now be at risk if a change in CEO signalled a change in approach.
BLSA CEO Busi Mavuso said they believed that De Ruyter had taken Eskom in the right direction. However, load shedding got progressively worse during his tenure, and this was used as a stick to beat him.
“The primary reason for the excessive load shedding, however, is the lack of new generation capacity coming on stream, which is a direct failure of the government, particularly in relation to the breakdown in the Renewable Energy IPPs Procurement Programme,” Mavuso said.
“We hope the new CEO receives the necessary political and public support to see through the important initiatives de Ruyter has started while being set realistic targets.”
Since 2007, Eskom has had 13 CEOs, including interim appointments.
Old Mutual Wealth investment strategist Izak Odendaal said the continuing instability at Eskom did not bode well for investor confidence since the power utility was critical to the functioning of the economy.
“The uncertainty created by de Ruyter’s (departure) is likely to further dent investor confidence, but the extent will depend on how quickly a suitable successor can be found and whether that individual will have the necessary political backing to do what is arguably South Africa’s toughest job,” Odendaal said.
BUSINESS REPORT