PRETORIA ANNOUNCES NEW BOARD, CHIEF EXECUTIVE FOR STATE-OWNED POWER UTILITY ESKOM

PRETORIA, The South African government has announced the appointment of new board members and chief executive officer (CEO) at State-owned power utility Eskom as an immediate measure to strengthen governance and management at the troubled parastatal.

The company has been facing several challenges, including a weak financial position, declining revenues and governance failures, which are threatening the sustainability of the company going forward, the Presidency said in a statement issued here over the weekend to announce the changes.

As a result, Government has decided on the following immediate measures to strengthen governance and management. This is the first step towards restoring confidence in the company, improving its financial position and restoring its operational performance.”

The new board will consist of Jabu Mabuza as Chairperson, Sifiso Dabengwa, Sindi Mabaso-Koyana, Mark Lamberti, Professor Tshepo Mongalo, Professor Malegapuru Makgoba, Busisiwe Mavuso, Nelisiwe Magubane,-Dr Rod Crompton, George Sebulela, Dr Pulane Molokwane, Dr Banothile Makhubela, and Jacky Molisane.

The government has recommended the appointment of Phakamani Hadebe as the acting Group CEO with immediate effect.

Further, the board is directed to appoint a permanent Group Chief Executive and Group Chief Financial Officer (CFO) within the next three months. The board is directed to immediately remove all Eskom executives who are facing allegations of serious corruption and other acts of impropriety, including (former acting CEO) Mr Matshela Koko and (CFO) Mr Anoj Singh,” the statement said.

Government further calls on all Eskom employees and other stakeholders who may have evidence of wrongdoing to bring this to the attention of law enforcement agencies so that culprits can be brought to book.”

It 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, said the Presidency.

Deputy President Cyril Ramaphosa, who is Chairperson of the Inter-Ministerial Committee on State-Owned Enterprises Reform, said: We are confident this intervention will restore the important contribution Eskom makes to our economy. We are determined to address the damage that has been done to this institution and place it on a new path of efficiency and integrity.

Government calls on all stakeholders, employees, suppliers and members of the public to work together to ensure that these measures are successful. For South Africa to flourish, Eskom must work and work well.

The announcement came following a meeting attended by President Jacob Zuma, Ramaphosa, Public Enterprises Minister Lynne Brown and Minister of Finance Malusi Gigaba on Friday to address urgent challenges at the company.

The Ministers of Public Enterprises, Energy and Finance will work together under the leadership of the Deputy President to deal with other structural issues, which include the funding model and other industry challenges identified by the Inter-Ministerial Committee on SOE Reform.

The Presidency said with the appointment of the new board and acting Group Chief Executive, the government firmly believes that Eskom can be returned to financial sustainability and contribute positively to the objective of shared prosperity.

Government will continue to act decisively to address challenges at key state owned enterprises to restore public and investor confidence and to ensure that they fulfil their economic and developmental mandates, it said.

Source: NAM NEWS NETWORK

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