- Gordhan reported to have rejected board’s recommendation
- Some board members have threatened to quit, people familiar say
The protracted search for Eskom Holdings SOC Ltd.’s new chief executive officer has raised tensions between the South African government minister that oversees the state utility and its board, according to people familiar with the matter.
Andre de Ruyter announced his resignation as CEO nine months ago, yet a permanent replacement hasn’t been named despite an ongoing energy crisis that is taking an ever-increasing toll on the economy. A candidate put forward by the board was rejected by Public Enterprises Minister Pravin Gordhan, online publication News24 reported on Wednesday.
The board and its chairman, Mpho Makwana, have become frustrated that the selection process has been delayed because of demands from the minister, said one of the people who asked not to be identified because the matter isn’t public. Some board members threatened to quit in the coming weeks if Gordhan rejects their recommendation, another person said.
Eskom said it reviewed 150 potential candidates in its global search for a CEO and had identified “a clear number one,” with two others as joint runner-up. While the utility forwarded its preference to the government, it was deemed to have failed to have met a requirement in the company’s memorandum of incorporation to submit three names and its recommendation was sent back.
“The board’s governance and strategy committee is applying its mind and working towards a speedy resolution,” Eskom said in an emailed response to questions. “Upon conclusion, the shareholder and Eskom will make appropriate announcements.”
Gordhan didn’t immediately respond to a request for comment.
© Bloomberg