/ 23 January 2023

Eskom chief executive: The job no one wants

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Eskom is unlikely to find a replacement for Andre de Ruyter before his three-month notice period ends. (Michele Spatari/Bloomberg)

Eskom is struggling to find a new chief executive officer before the end of March.

The Mail & Guardian understands that it is unlikely to be able to find a successor to Andre de Ruyter before his three-month notice period comes to an end as sources close to the recruitment process claim that candidates who have been headhunted by the board have rejected the call to lead the utility.

In December, De Ruyter agreed to stay beyond his stipulated 30-day notice period as the utility tried to find a replacement, the company’s chairman Mpho Makwana said.

A source close to the recruitment process told the Mail & Guardian that the utility has not yet found a candidate with the right qualifications and experience and would request that De Ruyter stay until June to give the utility time to find a replacement.

Eskom spokesperson Sikonathi Mantshantsha said preparations to advertise the group chief executive job were at an advanced stage.

Mantshantsha added that once this process had commenced, the normal Eskom recruitment process would be followed to identify a suitable candidate.

But added that, “It is highly unlikely that the post will be filled before the end of March. The Eskom board will give direction on the way forward should such an eventuality occur.”

The source added that the utility was in talks with the chairperson of the board to take over the position in the interim while they continued to search for a candidate, if De Ruyter refused to extend his time at the utility.

Eskom’s search for a new leader comes at a time when it is looking to get back some of the money owed by municipalities and clients through higher tariffs.

Last week, the National Energy Regulator of South Africa approved an 18.65% tariff hike due to be enforced in April. This action by the regulator has led to threatened legal action against the utility, the ANC and the regulator for approving a price hike when the utility is battling to provide adequate electricity.

The Democratic Alliance filed papers at the Pretoria High Court in an attempt to bar the energy regulator from granting the tariff hike.

During the closing address at the ANC’s Free State provincial conference held in Bloemfontein on Sunday, President Cyril Ramaphosa said he had asked Eskom not to implement the 18.65% tariff hike. 

“I have told Eskom that it should consider halting the hiking of electricity prices, especially for now while our people are struggling under high levels of load-shedding. Many people are reporting that their businesses are failing because of load-shedding,” he said.

During a media briefing last week, Ramaphosa said of De Ruyter’s successor: “It’s a difficult job. I applaud anyone who takes that job.”

Eskom’s problems

The utility has been affected by ailing coal-fired power stations and debt of over R349 billion and has struggled for years to meet electricity demand in the country.

Last year, the most electricity was shed from the national grid to date, with record power cuts leading to public frustration, damaged businesses and prompting calls for resignations at Eskom.

Another Eskom source added that part of the reason why some suitable candidates were not interested in the job was because of the lack of security at the utility.  

“Following all the death threats that De Ruyter received and the lack of action from us here is probably the reason why people were not applying. The job is risky and because some people didn’t like that De Ruyter wanted to get rid of the crime and they wanted to silence him,” the source said.

In December, De Ruyter claimed that he had been poisoned with cyanide in his office after announcing his resignation.

On Monday, trade union federation Cosatu urged the government to ask De Ruyter to extend his deadline for leaving until the utility could appoint a replacement, said spokesperson Sizwe Pamla.

“For Eskom to actually remain afloat, we need someone who has been there, who understands [how the utility works],” he said.

Amid speculation that Makwana would take over, Pamla urged the utility to avoid appointing the chairperson as acting chief executive as it had done in the past.

He added that this would distort accountability and leave Eskom in limbo.

Energy expert Chris Yelland said suitable candidates might view the position of Eskom chief executive as a career death trap 

“There’s no way we can expect a miraculous saviour to solve all our problems. We shouldn’t have undue expectations of a saviour coming along in the form of the new CEO,” he said

It could take six months or longer to find a replacement and individuals with the right kind of qualifications would come with a long list of conditions, he said.