Public Enterprises Minister Pravin Gordhan responded with an “emphatic no” to a question as to whether government considered outgoing Eskom CEO André de Ruyter to be a traitor, as implied in a recent statement by Mineral Resources and Energy Minister Gwede Mantashe, who said “Eskom, by not attending to loadshedding, is actively agitating for the overthrow of the State”.

Gordhan was speaking during a briefing convened by Eskom chairperson Mpho Makwana after De Ruyter’s resignation – submitted at 7:30 on Monday December 12, only days after Mantashe’s comments – was confirmed by Eskom on December 14, following a media leak.

“The emphatic answer is no [and] I'm not going to qualify the answer,” Gordhan said in response to a question on Mantashe’s comments, which Makwana said were not in his “purview” to comment on.

“It is absolutely unfair, and uncalled for, to use that kind of language for somebody who tried their best to get Eskom out of the mess that it was in, and on to a different kind of platform.

“The more knowledgeable people amongst you know that the mess didn't start in 2019 - it didn’t start in 2009, or 2010 or 2011 or 2012, it started a long time ago.

“And there's a long list of people who must be held responsible for decisions that they didn't make the right way.”

Gordhan said the comments by his Cabinet colleague were “unhelpful at a time when we need to engender confidence both in the institution and government”.

He also paid tribute to De Ruyter for the sacrifices he had made in moving from the private to the public sector and for “giving his all to this particular national project”, while acknowledging government failures to ensure that more generation was added in line with De Ruyter’s consistent call for an additional 4 000 MW to 6 000 MW of non-Eskom generation.

POLITICAL SUPPORT CRITICAL

Earlier in the briefing De Ruyter confirmed that his decision to resign had been made because he no longer felt he had the “support of the broader political economy”, which he described as “absolutely critical to enabling the success of Eskom going forward”.

“Given recent media reports, I'm unfortunately currently in a position where I do not regard that position as being tenable and I have accordingly decided to step back to afford the shareholder and the board the opportunity to appoint a candidate to the position of group chief executive who may be better suited, better equipped for the strategic and operational objectives at hand.”

De Ruyter had agreed to remain beyond his two-month notice period and would depart the organisation on March 31, 2023, to facilitate a smooth handover to his successor.

Makwana confirmed that he had accepted De Ruyter’s resignation when it was handed to him during a pre-scheduled meeting with De Ruyter on December 12 and that the board would work “tirelessly to ensure that we secure the next leader of Eskom”.

BOARD TURNAROUND PLAN?

Gordhan went to lengths to stress that government remained committed to the strategy of improving Eskom’s performance, while reforming the electricity supply industry, including the through unbundling of the utility and the creation of an independent grid company.

However, no firm date was set for the establishment of the independent board of the National Transmission Company South Africa, despite a list of candidates having been compiled and handed to Gordhan.

The Minister also underlined government’s ongoing commitment to the Just Energy Transition (JET) strategy, which was being supported financially by several developed countries and which included plans to repower and repurpose coal stations that were scheduled for retirement.

However, Makwana emphasised that the new Eskom board – which began work on October 1 and which he described as an engaged rather than a passive board – was working on a separate long-term turnaround plan to end loadshedding, which was currently being canvassed ahead of sign-off.

“We're in key consultative engagements with the shareholder and key principals to make sure that, when we do publish such a turnaround plan, it's got the full buy-in and support of all key stakeholders.”

Makwana signaled that the board intended to pursue a “dual strategy” of keeping the existing fleet maintained and improving its energy availability factor, while simultaneously embarking on the Eskom JET.