Eskom needs an astute political operator at its helm, writes Thebe Mabanga.
Eskom’s acting chief executive, Brian Molefe, appeared reasonably in control on Wednesday as he tried to assure the country and the financial markets that the long-term solution to load shedding - the building of additional capacity - was on track.
More reassuring for everyone would be the knowledge that Molefe, supported by a stable board and management team, was going to oversee the building of that capacity. It would be reassuring indeed if Molefe was given the job permanently and allowed to get on with the task of fixing Eskom and, with it, South Africa’s medium- to long-term prospects.
Giving Molefe the job permanently would allow him to attract the skills he requires to get the job done, a far bigger challenge than the cash crunch at the utility.
Former chief executive Tshediso Matona’s position became untenable as soon as Molefe was appointed after Matona’s suspension. Molefe, Matona’s peer in ANC and government circles since the advent of democracy in South Africa, has deeper knowledge of the capital markets from his time at the Treasury. Also, his experience as Transnet chief executive leading the company through the implementation of its R336 billion, seven-year market demand strategy, prepares him for dealing with challenges at Eskom.
The formal departures of Matona and group executive for capital Dan Marokane pave the way for Molefe to make appointments of his choice. Marokane, a more established executive at Eskom than Matona, could have proven a more disruptive influence.
Should suspended finance director Tsholofelo Molefe and group executive of technology and commercial Matshela Koko follow them out the door, as now seems likely, Molefe would have latitude to make his mark.
Molefe should be allowed to raid his former stable - Transnet - and bring across either finance director Anoj Singh or Richard Vallihu, former head of Transnet Engineering and now chief executive for Transnet National Ports Authority, to head up group capital.
Vallihu’s strength is that he could play the hands-on role that former Eskom chief executive officer Paul O’Flaherty played in his last year or so at getting things moving at Medupi, where contractors reported meaningful progress. He could do the same for Medupi and Kusile.
Another trusted lieutenant at Transnet was Disebo Moephuli, who Molefe brought from the PIC. Other finance director options include PPC Cement’s Tryphosa Ramano, another old colleague and peer who knows state-owned enterprises from her time at the Airports Company of South Africa.
The Transnet executive team has sufficient depth at group executive level and at division executive level to cope with a few losses. Besides, as acting group chief executive Siyabonga Gama showed when unveiling the R30-billion funding for new locomotives recently, he looks comfortable in that position.
At board level, Molefe should get into talks with Fred Phaswana, the recently retired 70-year-old chair of Standard Bank, who still seems sprightly and who could bring a wealth of international experience and attract similar calibre international candidates to the board.
That would be half, or maybe less, of the battle won, but it would send a strong signal and set Eskom on a path to recovery.
Molefe faces the danger of falling prey to forces that try to capture key Eskom contracts for themselves. But then that risk is faced by any South African chief executive. The only way around that would be to parachute in a country head from a multinational that has done extensive work in power generation and engineering.
But at this point Eskom does not need an engineer and power station builder as its head. It needs an astute political operator who knows how to read a capex budget and has warm relations with Treasury director-general Lungisa Fuzile. Molefe offers just that.
* Thebe Mabanga is a journalist with the African News Agency.
** The views expressed here do not necessarily represent those of Independent Media.
ANA