Former Eskom Executives Seek South Africa’s Toughest CEO Job
Former Eskom Executives Seek South Africa’s Toughest CEO Job
(Bloomberg) -- The chief executive role at Eskom Holdings SOC Ltd., considered the most challenging job in corporate South Africa, is attracting interest from people who know how difficult turning around the debt-ridden state utility will be.
Andy Calitz, the former CEO of LNG Canada, who started his career as an electrical engineer at Eskom and later held various senior posts at Royal Dutch Shell Plc, confirmed he applied for the job and declined to comment further. Dan Marokane, Eskom’s former head of group capital, has also applied, according to a person with direct knowledge of the situation, who asked not to be identified because he isn’t authorized to comment. Marokane declined to comment.
Business leaders suggested to Eskom’s board that former CEOs Brian Dames and Jacob Maroga also be considered for the post, according to another person familiar with the information, who asked not to be identified because it isn’t public. Neither responded to a request for comment.
Phakamani Hadebe stepped down as head of the utility at the end of last month, and Chairman Jabu Mabuza has temporarily taken over the position until a permanent appointment is made. The recently appointed chief restructuring officer, Freeman Nomvalo, is expected to complete a report on Eskom’s debt-reorganization options by Sept. 30.
Debt Mountain
Eskom’s new leader will have to turn around a company that supplies about 95% of the country’s power yet isn’t generating enough income to cover its costs, is saddled with 440 billion rand ($28.9 billion) of debt and poses a serious threat to the entire South African economy. The government has given the utility a three-year, 128-billion rand bailout, but that’s unlikely to be enough to get its finances back on track.
Maroga’s departure from Eskom was acrimonious -- the utility said it accepted his offer to resign in 2010, but he claimed he’d been unlawfully dismissed and filed an unsuccessful application for reinstatement.
Marokane was one of three executives, including then-CEO Tshediso Matona, who were suspended by Eskom’s board in 2015 amid an independent inquiry into the electricity producer’s performance. They eventually agreed to part ways amicably, and Eskom said it had never alleged that Marokane was guilty of misconduct or wrongdoing.
Applications for the CEO role closed on Aug. 2. Mabuza last month said he’d relinquish the post by the end of October.
--With assistance from Natalie Obiko Pearson.
To contact the reporters on this story: Paul Burkhardt in Johannesburg at pburkhardt@bloomberg.net;Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net;Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.net
To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Mike Cohen, Hilton Shone
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