Eskom head office, Megawatt Park
Photo by: Creamer Media
State-owned Eskom is continuing its search for a group CE, following Phakamani Hadebe’s resignation in May, which becomes effective at the end of this month.
Hadebe, at the time, said he was stepping down for health reasons after leading efforts to stabilise the highly indebted State firm since his appointment as CE in May 2018.
Eskom in a newspaper vacancy advert requested that applications for the position be submitted by August 2.
The utility said in the advert that the group CE would play a critical role in leading the execution of restructuring the entity, and that he or she must ensure financial and operational sustainability. The advert stated that interested applicants must have experience in managing a complex organisation, with at least 20 000 employees and a yearly turnover of more than R30-billion.
Eskom currently employs 47 000 people and has a turnover of about R190-billion; however, the entity is expected to report a loss of more than R20-billion for the 2018/19 financial year and has a debt burden of around R440-million.
The company is also holding out for the appointment of a chief restructuring officer (CRO), following President Cyril Ramaphosa’s announcement in February that Eskom would be unbundled into three separate entities – generation, transmission and distribution.
A CRO is expected to help reorganise the utility’s debt and effect the unbundling.
Public Enterprises Minister Pravin Gordhan earlier this month said a draft White Paper outlining government’s approach to the unbundling of Eskom, as well as how its unsustainable debt burden would be managed, was being prepared and should be finalised within weeks.
Finance Minister Tito Mboweni proposed a R23-billion a year fiscal injection into Eskom, over ten years, conditional on the restructuring. He confirmed that a CRO would be appointed to oversee the process.
Mboweni previously said a Special Eskom Appropriation Bill would be introduced to Parliament this week to make available the funding for Eskom.
A National Assembly plenary sitting has been scheduled for Tuesday, July 23, to decide on the Bill. If the plenary sitting agrees, the Bill will be sent to the National Council of Provinces for consideration.