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Eskom makes top appointments as leadership crisis abates

18th November 2009

By: Terence Creamer
Creamer Media Editor

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State-owned electricity utility Eskom, which has undergone some high-profile leadership ructions in recent weeks, leading to the resignations of both CEO Jacob Maroga and chairperson Bobby Godsell, confirmed some highly-anticipated senior appointments on Wednesday.

In a statement, the group's board announced that Paul O'Flaherty, whose name had been linked to the finance director's post for some months now, would officially take up the position as of January 1, 2010.

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Further, Dan Marokane would be appointed MD of primary energy, with effect from January 12, 2010, while Bhabhalazi Bulunga would take up the position of human resources MD, as from February 1 next year.

O'Flaherty, who is currently CFO at the Dubai-based Al Naboodah Construction Group and who previously worked at Group 5 and PricewaterhouseCoopers in South Africa, would officially replace Bongani Nqwababa, who departed Eskom for Anglo Platinum in early 2009.

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In the intervening period, Izak du Plessis had been the acting finance director at Eskom.

Marokane, meanwhile, would join the utility from PetroSA, where he has been the national oil company's operations vice-president. He will oversee the crucial area of primary energy, which had become a major cost driver at Eskom as its reserve margin fell and more coal was procured on short-term contracts.

Inadequate coal stockpiles were also at the heart of the 2008 power crisis, which led to months of load-shedding and Eskom had indicated previously that it would seek a new long-term dispensation with the South African coal-mining fraternity.

Possibly the most surprising announcement, however, related to the appointment of Bulunga, the current human resources GM at South African Airways (SAA). He joined SAA in March 2007, prior to which he was employed by BHP Billiton as HR manager at the mining giant's aluminium smelters in Mozambique and South Africa.

During the recent leadership tussel, some union members had called for the immediate permanent appointment of acting HR head, Elsie Pule.

Acting executive chairperson Mpho Makwana said that the board and executive committee saw the appointments as important to "executing the company's capacity expansion plans to address the country's electricity supply needs for the future".

"The board would like to thank Mr Izak du Plessis, Mr Vule Nemukula and Ms Elsie Pule for their diligence and hard work in their acting capacity as finance director and managing directors for primary energy and human resources respectively," Makwana said in a statement.

Earlier in the week, Godsell announced that he had decided not to rejoin utility, after being approach to do so by Public Enterprises Minister Barbara Hogan.

In a statement, Godsell expressed his confidence in the board and in Makwana.

"During this last week the Eskom board has been able to act decisively," Godsell said, adding that government had also given the board the backing it needed.

"Eskom is ready to move forward under new leadership. It is this new leadership that must write the new chapter. I have therefore reconfirmed my resignation to Minister Hogan," Godsell wrote.

Last week, Makwana was appointed acting Eskom executive chairperson at a special shareholder's meeting, a position he would occupy until a new CEO and chairperson were appointed.

Makwana indicated that an executive search had been initiated and that a preferred candidate should be identified within 90 days.

 

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