Phakamani Hadebe has been appointed Eskom acting CEO with immediate effect, while Jabu Mabuza will take over as chairman of the board, the presidency announced on Saturday.
A number of measures were being taken to "strengthen governance" at Eskom, including the appointment of new board members and stabilising management at the energy parastatal, the presidency said in a statement.
This followed a meeting of President Jacob Zuma, Deputy President Cyril Ramaphosa, Public Enterprises Minister Lynne Brown, and Finance Minister Malusi Gigaba on Friday to address urgent problems at the company. This intervention would be ratified by Cabinet at its next meeting, the presidency said.
"Eskom is critical to the South African economy. As a key enabler of economic growth and social transformation any further deterioration of Eskom’s financial and operational conditions could have a severe impact on the country," it said.
The company had been facing several problems, including a weak financial position, declining revenues, and governance failures, which threatened the sustainability of the company in future.
Therefore, the government had decided immediate measures to strengthen governance and management. This was the first step towards restoring confidence in the company, improving its financial position, and restoring its operational performance.
The new board members were Jabu Mabuza (chairman); Sifiso Dabengwa; Sindi Mabaso-Koyana; Mark Lamberti; Tshepo Mongalo; Malegapuru Makgoba; Busisiwe Mavuso; Nelisiwe Magubane; Rod Crompton; George Sebulela; Pulane Molokwane; Banothile Makhubela; and Jacky Molisane.
"Government has recommended the appointment of Mr Phakamani Hadebe as the acting group chief executive with immediate effect. Further, the board is directed to appoint a permanent group chief executive and group chief financial officer within the next three months," the presidency said.
- African News Agency (ANA)
