{"id":489205,"date":"2023-04-26T13:11:59","date_gmt":"2023-04-26T11:11:59","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=489205"},"modified":"2023-04-26T13:14:22","modified_gmt":"2023-04-26T11:14:22","slug":"de-ruyter-explains-why-he-quit-eskom","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/government\/489205-de-ruyter-explains-why-he-quit-eskom.html","title":{"rendered":"De Ruyter reveals why he quit Eskom"},"content":{"rendered":"<p>Former Eskom CEO Andr\u00e9 de Ruyter said that micro-management by public enterprises minister Pravin Gordhan and overreach by the power utility&#8217;s newly-appointed board had played roles in his decision to leave the company.<\/p>\n<p>These admissions formed part of his answers to questions during a <a href=\"https:\/\/www.youtube.com\/watch?v=2eb-TaoYZYs\" target=\"_blank\" rel=\"noopener\"><strong>meeting<\/strong><\/a> of Parliament&#8217;s Standing Committee on Public Accounts (Scopa) on 26 April 2023.<\/p>\n<p>De Ruyter was asked whether the Department of Public Enterprises and the minister at its head, in particular, had made it difficult for him to do his job.<\/p>\n<p>The former CEO said there were examples of apparent micro-managing interventions by Gordhan in the day-to-day operations of Eskom.<\/p>\n<p>&#8220;I think Mr Gordhan is known for a style that can be characterised as being extremely involved in operational detail,&#8221; said De Ruyter.<\/p>\n<p>He explained that Gordhan would look for highly specific details about Eskom&#8217;s operations, including data about individual power station units.<\/p>\n<p>In addition, the minister spoke directly to middle-ranking officials in the organisation, bypassing senior executives like De Ruyter, chief operating officer Jan Oberholzer, and Eskom&#8217;s head of generation.<\/p>\n<p>&#8220;Whether that was to gain information or to verify information, I don&#8217;t know, but it made life as the responsible accounting officer quite difficult,&#8221; De Ruyter stated.<\/p>\n<p>&#8220;[Having] many different cooks in the kitchen does not always result in a good meal.&#8221;<\/p>\n<div id=\"attachment_473339\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/12\/Pravin-Gordhan-with-a-file-on-his-head.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-473339\" class=\"size-full wp-image-473339\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/12\/Pravin-Gordhan-with-a-file-on-his-head.jpg\" alt=\"\" width=\"1200\" height=\"800\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/12\/Pravin-Gordhan-with-a-file-on-his-head.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/12\/Pravin-Gordhan-with-a-file-on-his-head-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/12\/Pravin-Gordhan-with-a-file-on-his-head-800x533.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/12\/Pravin-Gordhan-with-a-file-on-his-head-768x512.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><p id=\"caption-attachment-473339\" class=\"wp-caption-text\">Pravin Gordhan, Minister of Public Enterprises<\/p><\/div>\n<p>De Ruyter was also asked if the recently-appointed Eskom board, chaired by Mpho Makwana, had played a role in his departure.<\/p>\n<p>The board was appointed in September 2022 and tasked to increase the utility&#8217;s energy availability factor (EAF) to 75%, which some experts believed was setting it up for failure.<\/p>\n<p>That is because non-executive board members have little to no say over the operational matters of the companies they oversee.<\/p>\n<p>In Eskom&#8217;s case in particular, improving the EAF would depend not only on the work of Eskom&#8217;s management but also on that of the Departments of Public Enterprises and Mineral Resources and Energy departments.<\/p>\n<p>De Ruyter&#8217;s feedback to Scopa suggested the new board did not have a firm grasp on how good corporate governance worked.<\/p>\n<p>&#8220;It certainly made my life quite challenging. Meetings were held with subordinates of mine without my knowledge, and instructions were given [to them],&#8221; De Ruyter said.<\/p>\n<p>&#8220;I experienced this as disempowering. I know certain colleagues on the executive committee had similar experiences.&#8221;<\/p>\n<p>&#8220;The executives are the people who should run the company and should be held to account to the board&#8217;s oversight.&#8221;<\/p>\n<div id=\"attachment_484395\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Mpho-Makwana-at-desk.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-484395\" class=\"size-full wp-image-484395\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Mpho-Makwana-at-desk.jpg\" alt=\"\" width=\"1200\" height=\"800\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Mpho-Makwana-at-desk.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Mpho-Makwana-at-desk-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Mpho-Makwana-at-desk-800x533.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Mpho-Makwana-at-desk-768x512.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><p id=\"caption-attachment-484395\" class=\"wp-caption-text\">Mpho Makwana, Eskom chairmman<\/p><\/div>\n<p>In contrast to his experience with the new board, De Ruyter said he had a positive relationship with the previous interim board chaired by Malegapuru Makgoba.<\/p>\n<p>&#8220;I was of the view that they held management and the executive \u2014 including myself \u2014 to account in a critically constructive way. It was certainly not plain sailing,&#8221; De Ruyter said.<\/p>\n<p>&#8220;I think their activities and work were limited by a lack of capacity, as you know they had a number of vacancies on the board that were not filled for a number of years.<\/p>\n<p>&#8220;That gave rise to key committees being severely depleted of board members to participate in deliberations and make decisions.&#8221;<\/p>\n<p>&#8220;But \u2014 all in all \u2014 I think that the Makgopa board understood the principles of corporate governance and understood the role of non-executive members providing oversight and acting accordingly.&#8221;<\/p>\n<p>De Ruyter claimed that the new board had adopted a markedly different approach than the interim board.<\/p>\n<p>&#8220;It has become a self-styled engaged board, or activist board, and has immersed itself in operational detail which some would characterise as an overreach for a non-executive board,&#8221; he said.<\/p>\n<p>Makwana has not shied away from criticising De Ruyter, <a href=\"https:\/\/mybroadband.co.za\/news\/investing\/481469-anc-and-eskom-board-attack-andre-de-ruyter.html\" target=\"_blank\" rel=\"noopener\"><strong>labelling his decision<\/strong><\/a> to raise accusations of corruption at Eskom involving ANC minister and politicians in the now-famous interview with eNCA&#8217;s Annika Larsen as &#8220;reprehensible&#8221;.<\/p>\n<p>He also accused De Ruyter of &#8220;chasing renewables&#8221; instead of focusing on fixing existing coal power plants and avoiding a performance review with his early resignation.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/energy\/489051-eskom-wants-south-africa-to-stop-using-so-much-electricity.html\" rel=\"bookmark\">Eskom wants South Africa to stop using so much electricity<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>De Ruyter has delved into to factors that played a role in his decision to resign from the power utility after three years at the helm.<\/p>\n","protected":false},"author":341042,"featured_media":489213,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18668],"tags":[61891,181,35,65541,81715,4198,43308],"class_list":["post-489205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-andre-de-ruyter","tag-eskom","tag-headline","tag-malegapuru-makgoba","tag-mpho-makwana","tag-pravin-gordhan","tag-standing-committee-on-public-accounts-scopa"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/489205"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=489205"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/489205\/revisions"}],"predecessor-version":[{"id":489215,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/489205\/revisions\/489215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/489213"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=489205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=489205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=489205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}