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25 May 2019 09:19
Phakamani Hadebe had been in the role for a little over a year. (Delwyn Verasamy/M&G)
Eskom has lost yet another chief executive, as the utility announced on Friday evening that Phakamani Hadebe would be stepping down at the end of July, due to health reasons.
Hadebe had been in the role for a little over a year. After taking the helm on an interim basis last January, Hadebe was permanently appointed in May 2018.
In a statement Hadebe said: “It is no secret that this role comes with unimaginable demands which have unfortunately had a negative impact on my health.
In the best interest of Eskom and my family, I have therefore decided to step down.”
Eskom board chairperson Jabu Mabuza, said that the Hadebe had been “instrumental in driving stability at Eskom during a very challenging period at the organisation”.
“Appreciating the toll that this takes on an individual, we have had to, with regret, accept his decision,” said Mabuza.
Since 2010, Eskom has had no less than eight chief executives and acting chief executive, including the likes of Brian Molefe, Matshela Koko and Sean Maritz all of whom left under a cloud.
High hopes accompanied Hadebe’s appointment.
But the past year revealed the extent of the rot at the organisation after years mired in state capture and poor management. In the first set of full year results reported under Hadebe mid-year last year, Eskom’s irregular expenditure skyrocketed to almost R20-billion as the company began to lift the lid on suspect contracts in earnest.
At the time the group reported losses of almost R3-billion — but since then Eskom has forecast a loss of closer to R20-billion for the 2018/19 year which ended on March 31.
Eskom’s debt has soared to over R420-billion and it is unable to cover interest payments from its revenues, despite a number of recent tariff increases. In February’s budget, treasury announced that it would provide Eskom with a R69-billion injection over the coming three years, but this is likely to rise to around R150-billion in the coming 10 years.
Extensive operational issues have aggravated its financial problems — resulting in the country being plunged into stage four load shedding earlier this year.
Eskom’s ageing power stations have been breaking down due to a legacy of poor maintenance, at the same time that the working units of its new build projects Medupi and Kusile have not been performing properly.
The board did not immediately respond to a request for comment, but told the Mail & Guardian on the weekend that it would deliberate on a way forward in the next two weeks and would work with Hadebe in the transition. It would also go about finding a replacement in line with Eskom policies, and would update the market on its plans as soon as it had met.
*This story has been updated to include a comment from the Eskom board
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