This, together with the announcement of joint chief executives Bongani Nqwababa and Stephen Cornell departing, was very well received by the market. The independent review found no specific wrongdoing by Sasol’s corporate leadership, but the two chief executives agreed to step down in recognition that some of the problems occurred under their watch.
The review found that the issues mainly related to a group of individuals in the management team who fostered a “culture of fear”, which prevented information from flowing up the management chain. Various governance shortcomings within the project further contributed to the issues. Three senior vice-presidents with roles in the project left, while disciplinary action had been initiated against the executive vice-president previously in charge of the project.
The LCCP consists of a world-scale 1.5-million-ton-per-year ethane cracker, and six downstream chemical units and is currently under construction near Lake Charles, Louisiana, in the US, adjacent to Sasol’s existing chemical operations.
Once commissioned, this world-scale petrochemicals complex will roughly triple Sasol’s chemical production capacity in the US.