Public enterprises minister Pravin Gordhan has expressed his “disappointment” at outgoing Eskom CEO André de Ruyter’s conduct, saying he was blindsided by the man who he trusted and supported for three years.
In an interview with the Sunday Times this week, Gordhan said he gave De Ruyter his full support even when some were critical of his performance at the helm of Eskom.
“Let’s say that it is very disappointing because many people in government gave him support for his role and as a patriotic South African we thought he was going to make a proper contribution to ensure energy security in the country.
“I am sure that there are some good things that he has done and so we cannot take that away from him. At the same time, to engage in the incorrect narrative coming out of that interview, is just completely shocking,” said Gordhan.
Gordhan’s response comes after De Ruyter’s interview with eNCA journalist Annika Larsen, in which he made explosive allegations about the inner workings of the power utility and his experience at the helm.
De Ruyter said he believed there was “evidence that suggested” the ANC was using the ailing parastatal as a cash-cow.
He said he expressed concerns to a “senior government minister about attempts, in my view, to water down governance around the $8.5bn [about R156bn] that, by and large through Eskom’s intervention, we got at COP26, and the response was essentially that, ‘You must be pragmatic. In order to pursue the greater good, you have to enable some people to eat a little bit.’”
Gordhan said he has always had a zero-tolerance approach to corruption. He said his disappointment with De Ruyter was because he had been patient with him.
“I was very nice to him. I have been very patient with De Ruyter because I didn’t want another instance where another CEO leaves in a year or a year-and-a-half. So the government gave him a chance to prove himself and to prove that he can get on top of the game.”
Gordhan said he has always had a zero tolerance approach to corruption. He said his disappointment with De Ruyter was because he had been patient with him
While the just energy transition was important to focus on for the next few decades, right now South Africans wanted an end to load-shedding, Gordhan said.
“This can only be achieved by dedicated focus on getting the existing power stations to perform better and the addition in different forms of additional megawatts into the grid.
“Eskom is a very complex organisation, which was severely damaged by corruption and state capture both past and present. It requires an extraordinary effort by the whole of government to get Eskom on the right track again.
“That is what the July 25 2022 energy plan announcement by the president is intended to achieve. This must remain our singular focus as we continue the process of decarbonising our economy,” said Gordhan.
When De Ruyter and other Eskom executives appeared before parliament’s portfolio committee on public enterprises to present the annual report and financial statements for the 2021/2022 financial year on Wednesday, the sitting was overshadowed by the interview, which had been broadcast the night before.
During the meeting Gordhan said it was important for CEOs to keep their political views private.
“What’s important is that CEOs of any entity, including Eskom, should not be involved in open political debates or assertions, and where they have political views, that is their private business and they are welcome to express those views privately.
“But it is the responsibility of any CEO of any entity, as far as I am concerned, to keep their focus on the job at hand and make sure that is done as proficiently as possible.”
Gordhan said corporate governance required that the matter be investigated by the Eskom board.
At a special meeting on Wednesday, the board and De Ruyter reached a “mutual agreement” for his early departure. Calib Cassim has been appointed as interim CEO.
Board chair Mpho Makwana told Business Day that CEOs are also the chief reputation officers of the organisations they lead.
“All of us as directors, executive and nonexecutive, among our duties have to ensure that primarily, we serve the best interest of the companies that we lead. And so, the principle here is that the board felt that on the particular matter of being the chief reputation officer of the organisation, Mr De Ruyter had failed.
“Before we recused him [from the meeting], he said: ‘If it is clear to the board that I have caused embarrassment for Eskom, I herewith offer to leave earlier than the end-of-March date that we had agreed on goodwill, because my notice period ends on February 28.”
After deliberations the board accepted De Ruyter’s offer to leave early, said Makwana.
Gordhan told the Sunday Times his focus remained on fighting corruption.
“Now the focus must be on rebuilding a solid, committed leadership. In addition, the power station managers and staff must be supported to improve the performance of the power stations and substantially reduce load-shedding.
“This is what the South African public expects of Eskom.”
Now the focus must be on rebuilding a solid, committed leadership
— Public enterprises minister Pravin Gordhan
He said when De Ruyter arrived at Eskom, various initiatives were in place to fight corruption, particularly those implemented by the late Jabu Mabuza.
“The parliamentary inquiry in 2017 by the portfolio committee of public enterprises laid bare the key elements of the corruption that was taking place.
"Subsequently, massive evidence was put before the Zondo commission, which also indicated the nature of corruption and the people involved in the corruption as well as the mismanagement of Eskom.
“Various government representatives, including ministers and law enforcement agencies, have pointed out the damaging effects of poor coal quality, poor maintenance and various forms of procurement fraud which were harming Eskom’s performance.”
He would not be drawn on whether he had spoken to President Cyril Ramaphosa after De Ruyter’s departure.
Presidency spokesperson Vincent Magwenya declined to comment on the matter.
Acting government spokesperson Michael Currin said the mutual agreement between the Eskom board and De Ruyter to vacate his position with immediate effect was noted.
ANC secretary-general Fikile Mbalula challenged De Ruyter to prove his claims, failing which, he said, the party would take legal action.
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