Transnet appoints acting CEO after Portia Derby quits

The Transnet board appointed head of Transnet pipelines Michelle Phillips acting group CEO. Supplied

The Transnet board appointed head of Transnet pipelines Michelle Phillips acting group CEO. Supplied

Published Sep 29, 2023

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Transnet has appointed Michelle Phillips, the Chief Executive of Transnet Pipelines, as the acting CEO of Transnet after the resignation of Portia Derby.

Hlengiwe Makhathini has been appointed acting Chief Financial Officer after the resignation of Nonkululeko Dlamini.

Transnet board chairperson Andile Sangqu said the hunt was now on for the new CEO. He said Derby had joined the company at the time it was faced with a number of challenges.

But they hope that they will be able to fill the two positions soon.

“On behalf of the Board, I want to take this opportunity to convey to Portia and Nonkululeko our best wishes and to express our gratitude for their dedication, selflessness and hard work in serving the company during this critical time in its history", said Sangqu.

He said Phillips will step into the position on November 1.

Transnet will start the search for the new CEO and CFO, said Sangqu.

The resignation of Derby means Transnet is the second State-Owned Entity without a CEO in the last few months.

Eskom has been searching for a CEO since Andre de Ruyter left the position last December after a fallout over his interview where he said there was massive corruption and looting at the power utility.

It was reported this week the process to appoint the new Eskom CEO stalled because the Minister of Public Enterprises, Pravin Gordhan, rejected the candidates that had been recommended by the board.

When De Ruyter resigned at Eskom the government had promised it would have the new CEO within three months.

Transnet is the second large SOE to be without a permanent CEO after the resignation of Derby.

Transnet said Derby will continue to support Phillips in her new role as acting CEO.

“Ms Derby will be available until the end of the calendar year to support the acting GCE and the Board as part of the handover process,” said Transnet.

Transnet reported a loss of R5.7 billion in the previous financial year due its problems in the rail infrastructure, which has come under severe strain.

Eskom also incurred a loss of R5bn in the first quarter of the current financial year.

President Cyril Ramaphosa has been urged to act on the SOEs as they pose a risk to the economy.