27 June 2002
Today we are bracing ourselves for the 1st July 2002 when we will witness yet another landmark in the positive evolution of Eskom, in that, Eskom will be entering a new era in its corporate identity. It will be the date upon which Eskom in its current form, under the leadership of the Electricity Council, will cease to exist and Eskom Holdings Limited, a public company under the leadership of a new Board of Directors, will be born.
This historic event follows a process of consultation where most if not all stakeholders were consulted during the legal process, which culminated in the enactment of the Eskom Conversion Act No 13 of 2001, which had the effect of converting Eskom into Eskom Holdings Limited. The conversion is intended to better position the company to meet the challenges posed by the global and market demands including competition whilst also enabling it to continue playing its developmental role in the country.
Let me assure you that Eskom, despite the conversion into being a public company, will remain the energy supplier of first resort, hence the need to ensure its continued existence. The conversion, therefore, brings with it the capacity for Eskom Holdings Limited to function as a company without the serious confines of its present state.
Eskom has established a reputation of excellence over its eighty-odd year history against overwhelming odds and has exceeded financial performance expectations for several years running despite unfavourable market conditions. I credit the fact that Eskom is today one of the leading power producers in the world, largely to the visionary leadership of the Electricity Council and the Eskom Management. It is with gratitude that I thank the Council for the ingenuity and effort that it has poured into Eskom, and which has earned Eskom the award of being Global Power Company of the Year in 2001. During the tenure of the Council, Eskom was also rated by Moody's, the international rating agency, above that of the sovereign. This is certainly an achievement to be proud of.
I wish to convey my deepest appreciation to each of you, Reuel Khoza, Thulani Gcabashe, Frans Baleni, Mrs N. Majija, Mrs Joyce Philiso-Seroke, Eddie Funde, Linda Mngomezulu, Jo Hlongwane, Wilhelm Kok, Aubrey Dickson, Richard Linell, Prof Izak Lambrecht, David Mostert, Charles Veijeren and JP Deetlefs.
Government remains committed to good corporate governance in the boards of State Owned Enterprises, particularly, during the restructuring process. This is necessary in order to equip boards with the ability to adequately face the challenges posed by the restructuring.
The new board appointments are a reflection of Government's commitment to ensuring greater transparency and accountability in the boards of State Owned Enterprises. The appointments also reflect Government's commitment of ensuring greater diversity of skills, ideas and domestic as well as global experience in the boards, hence a specific endevour was undertaken to introduce international non-executive directors into the board of Eskom Holdings Limited.
It is within this context that the Shareholder has assembled a credible team in terms of expertise, qualifications and experience whilst not compromising the issues of equity in the board. The composition of this, the inaugural board of Eskom Holdings Limited, is in itself a challenge to the individual board members to discharge their responsibilities in the manner and form that is consistent with bettering the performance of Eskom Holdings Limited and positioning it appropriately as a competitor of merit in the world.
In appointing the board, there was a challenge to maintain continuity in the business of Eskom Holdings Limited, and therefore, a decision was taken to retain key directors. These include the current Chairman, Mr Reuel Khoza, Chief Executive, Mr Thulani Gcabashe and Chief Financial Officer, Mr Willem Kok. These directors will provide the board with the requisite knowledge and experience in the business of Eskom Holdings Limited. To further reinforce continuity, two current serving Council members, Mr Frans Baleni and Mr Sonwabo Funde, were retained. However, there was also a need to bring in new ideas and innovation and therefore the Shareholder has appointed new non-executive directors to the board.
I acknowledge that for the board to perform to expectation, it will need clear shareholder direction, and therefore, I undertake, insofar as I am able, to provide support to the new board in the discharge of its responsibilities. I will ensure that the open and co-operative relationship that I have enjoyed with the Council and Management, is maintained with the new board.
I take this opportunity to congratulate the inaugural Board of Directors of Eskom Holdings Limited and wish the company, the Board of Directors, its Executive Management and all the Eskomites the very best in this new era.
I would like to provide the public with a brief overview of the new board and a further announcement of international board members will happen soon.
Reuel Khoza (New Chairman)
Mr. Khoza is currently the chairman of the Electricity Council and has been a member of the Council since 1997. He has also been appointed to the position of Chairman of the new board.
Thulani Gcabashe
Mr. Gcabashe is the Chief Executive of Eskom and has been serving in this position since November 2000. He has however been with Eskom since 1993 serving in many capacities. He has a broad understanding of Eskom's business and has contributed directly to the successes of Eskom. His experience and qualifications will be invaluable in the board.
Dr. Willem Kok
Dr Kok currently is an Executive Director: Finance and is thus the head of the Eskom Treasury Division. He has been with Eskom since 1988 when he was seconded as Capital and Money market Advisor.
Frans Baleni
Mr. Baleni has been with the Council for some time. He has experience in Trade Unionism as well as negotiation skills and carries with him a good understanding of the Eskom Business.
Sonwabo Funde
Mr Funde is a qualified Electrical Engineer by profession, with a Masters degree in Science from the Leningrad Polytechnic Institute in St. Petersburg and has served on the Council since its inception.
Wendy Lucas-Bull
Ms Lucas-Bull is currently the Chief Executive Officer at Retail Bank, FirstRand Banking Group. She has experience at board level having served as director on the boards of RMB Holdings Ltd, Discovery Health, Momentum Group Ltd and Telkom Ltd.
Nonkululeko Msomi
Ms Msomi, an Attorney by profession with Risk Management experience, is a Chief Director responsible for the management of Government shareholding interests in State Owned Enterprises within the Department of Public Enterprises.
Jacob Modise
Mr Modise currently holds the position of Chief Operating Officer of Johnnic Holdings Limited. He also sits on the boards of a number of listed and unlisted companies including Johnnic Communications Limited, Johnnic Entertainment Limited, Johnnic e-Ventures, Johnnic Publishing Limited, M-Tel, M-Net, Supersport, Land Bank, SAICA and others.
Allen Morgan
Mr. Morgan was a member of the Electricity Council since 1994 until his retirement in 2000. He is an electrical engineer by profession and is a member of the South African Institute of Electrical Engineers. He has been with Eskom since 1971 and has also previously served as Chief Executive of Eskom. He therefore has a depth of experience in the business operations of Eskom.
Sindi Zilwa
Ms Zilwa is a Chartered Accountant, co-founder of Filtane Nkonki and Co. and is currently the chairperson of Nkonki Sizwe Ntsaluba. She is furthermore a non-Executive Director at the South African Mint and Wiphold Ltd.
Mpho Makwana
Mr Makwana is a Managing Director of Saatchi & Saatchi. He joined Saatchi & Saatchi after starting and leading the Change Management Consultancy Organisation for Inspirational Leadership (OIL), which was a subsidiary of MEEG Limited.
Sintu Mpambani
Mr. Mpambani is an economist and is currently Senior Lecturer at the University of Transkei.
Versha Mohanlal Rowjee
Ms Rowjee is currently with South African Breweries Regional office providing support to financial planners within the finance department. She has a Bachelor of Commerce and holds a Certificate in Business Management. She has been involved with and will provide insight to issues of disability in the company.
Department of Public Enterprises
Contact Person: Ms Pumla Mtyeku
Tel: 082 903 2423