Cape Town – South Africa’s Public Enterprises Minister Pravin Gordhan has denied interfering in the appointment of a new CEO for Eskom.
According to The Citizen, the appointment process was put on hold after Gordhan rejected a recommended frontrunner from the board, insisting that a shortlist of three candidates be considered as per the memorandum of incorporation (MOI) guidelines.
Gordhan said that he has not interfered but has insisted on following the formal legal process.
“I reject both those allusions because today it’s popular to find a scapegoat to explain why things happen or don’t actually happen. So, I reject both those ideas,” he said during an interview with 702.
Gordhan said that businesses typically have a document known as the memorandum of incorporation (MOI). This document, he said, outlines the scope of actions a company is permitted or prohibited from taking.
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“Companies have a document, let’s call it the constitution of a company, which is called a memorandum of incorporation.
“This tells the company what it can and can’t do and very clearly. Within the state entities, such as Eskom, boards are supposed to identify three individuals and three names need to be submitted. We were confronted with the violation of the MOI by the submission of one name. It had to be referred back to the board. I have not interfered. This is a formal, legal process that needs to be followed and the board understands what it has to do,” he said.
Reports indicated over the weekend that the search for a new CEO for Eskom is ongoing following the departure of former CEO Andre de Ruyter earlier this year.
Electricity Minister Kgosientsho Ramokgopa provided an update on the CEO appointment process during a media briefing, IOL reported.
He suggested that Gordhan could offer further information about the CEO appointment.
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However, a government communications officer informed journalists that, in the global search, only a single candidate out of 147 was initially recommended but was subsequently rejected by the government (the Shareholder), the reports said.
“When the Board submitted the initial submission, upon conclusion of the selection process, it was fully cognisant of the provisions of Section 14.3.2 of the MOI [Memorandum of Incorporation] which requires that the submission clearly profile three appointable candidates.
“The Board emerged with a single appointable candidate. The recommendation was subsequently turned back by the Shareholder who did not concur with the recommendation as it was deemed to not fully meet the requirements of clause 14.3.2. of the MOI,” a communication to journalists read, according to the report.
Eskom had been without a CEO for nine months, and despite some temporary measures, the leadership vacuum needs to be resolved as the utility faces ongoing challenges, including load shedding.
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Compiled by Betha Madhomu
