The board of power utility Eskom has appointed Brian Dames (44) as CEO of the company, starting July 1.

Dames, an Eskom veteran of more than 20-years standing, was always the favoured internal candidate to get the job, which was controversially left vacant by Jacob Maroga in November last year, following a stormy board meeting in late October.

Ahead of the appointment, Dames (hitherto chief officer of Eskom's generation business) had managed to earn some support from two of the group's key trade unions, the National Union of Mineworkers (NUM) and Solidarity. However, he will take up the post in the midst of difficult wage negotiations with these same groups, which could still result in industrial action.

The NUM has applied for a certificate of nonresolution from the Commission for Conciliation, Mediation and Arbitration, which could pave the way for a strike at Eskom. Solidarity, meanwhile, has also declared a dispute, and has raised concerns about the million of rands set aside for executive bonuses at a time when Eskom is digging in its heals over salaries and housing allowances.

Unions are demanding an 18% wage hike and a housing allowance, while Eskom is reportedly offering a 7% increase.

"We welcome the appointment of Dames and look forward to the stability that his appointment brings to Eskom," acting chairperson Mpho Makwana said in a statement.

"This now completes the leadership team that will take Eskom further into a new era."

Makwana noted recently that other key vacancies had also been filled, with the vital position of finance director having been occupied by Paul O'Flaherty in January.

Further, Chose Choeu, previously of Microsoft, had been appointed MD of Corporate Affairs as from June 1, while Bhabhalazi Bulunga had taken up the role of human resources head as from January.

ABOUT DAMES

Dames, who was born on July 4, 1965, in Britstown, in the Northern Cape, joined Eskom in 1987 as a graduate-in-training. A physicist, he holds a BSc (Hons), an MBA, and a Graduate Diploma in Utility Management.

Prior to his current position, Dames has held the following positions: GM, Eskom (nuclear); power-station manager, Duvha; engineering manager, Matimba power station; generation-information manager; and nuclear physicist, Koeberg power station.

Eskom has been without a top executive since Maroga offered to resign during a board-meeting clash with his chairperson, Bobby Godsell. Maroga subsequently contested the fact that he had made the offer, but the board notified him in early November that it had, nevertheless, accepted his resignation.

However, Godsell, a well respected business personality in South Africa, also stepped down when it became unclear whether he had the full backing of Eskom's shareholder, the South African government. Makwana was then appointed acting executive chairperson and announced in November that Eskom would conduct a wide-ranging search for a new CEO - a process that he expected to endure for 90 days.

However, it took far longer than that, partly because the utility had to be sure that it was legally entitled to make the appointment, owing to the fact that Maroga challenged his termination in the courts, in which he also sought to prevent an appointment of his replacement.

All legal impediments were cleared in early May when Judge Moroa Tsoka of the Johannesburg High Court set aside Maroga's application to prevent the appointment.

However, Tsoka did not prevent Maroga from pursuing possible damages and he is now seeking compensation of more than R87,5-million for what he claims to have been an unfair dismissal. The case resumed on June 7 and continues.