Eskom chair Jabu Mabuza resigns

Eskom chair Jabu Mabuza unexpectedly resigned on Friday, president Cyril Ramaphosa announced. In the wake of his resignation, Eskom will also get a new board, the presidency said.

"In his resignation letter, Mabuza apologised for Eskom's inability to meet the commitment it made to the president, the deputy president and the relevant ministers at a meeting on December 11th 2019 to avoid load shedding over this period," the presidency said in a statement

Rampahosa commended Mabuza for taking responsibility and accepting accountability for events under his leadership.

On Wednesday, deputy president David Mabuza said Ramaphosa was misled when he was told there would be no load shedding before the January 13.

Instead, South Africa has been hit by daily load shedding for the past week.

Eskom has not managed to keep unplanned breakdowns at below 9,500MW - the level at which it is forced to consider loadshedding - for a single day since December 4, 2019.

Unexpected bouts of loadshedding in January - a time of low electricity demand - was triggered by the failure of a conveyor belt feeding coal from Exxaro’s Grootegeluk mine to the Medupi power station in Lephalale, Limpopo.

"Government continues to support the measures being taken by Eskom to restore reliable electricity supply as a matter of priority, and is proceeding with measures to introduce new generation capacity – including self-generation – in the shortest possible time," the presidency said on Friday.

It also announced that government will soon establish a "re-configured Eskom board with the appropriate mix of electricity industry, engineering and corporate governance experience".

Mabuza, who previously chaired Telkom, was appointed as Eskom chair almost exactly two years ago. In July, he became the embattled utility's acting CEO after the resignation of former CEO Phakamani Hadebe.

New CEO André de Ruyter took over on Monday.

ZAR/USD
17.38
(-0.05)
ZAR/GBP
22.72
(-0.10)
ZAR/EUR
20.56
(-0.12)
ZAR/AUD
12.45
(-0.12)
ZAR/JPY
0.16
(-0.19)
Gold
1942.90
(+0.07)
Silver
26.42
(+0.07)
Platinum
941.16
(+0.46)
Brent Crude
44.74
(-0.36)
Palladium
2104.73
(+0.41)
All Share
57077.48
(-0.60)
Top 40
52737.48
(-0.65)
Financial 15
10156.41
(-0.69)
Industrial 25
75107.47
(-0.84)
Resource 10
58926.78
(-0.40)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1011 votes
It depends on how the funds are used.
74% - 6769 votes
No. We should have gotten the loan elsewhere.
16% - 1429 votes
Vote