Eskom new board has urgent issues to address to restore investor confidence

Government's decision to shake up Eskom over the weekend and appoint a new 13-member board has been widely welcomed.

Picture: EWN.

JOHANNESBURG - Eskom's new board and acting CEO have a number of urgent issues to address in the next 10 days in order to restore investor confidence and steer the utility back onto a path of financial sustainability.

Government's decision to shake up Eskom over the weekend and appoint a new 13-member board has been widely welcomed by political parties and business organisations.

Jabu Mabuza has taken over from acting chair Zethembe Khoza and Phakamani Hadebe has been appointed as acting CEO.

Eskom now needs to focus on stabilising management and publishing its interim financial results before the end of January.

Government issued Eskom's new board and Hadebe with a list of priorities.

The power utility must appoint a permanent CEO and CFO within the next three months, remove all executives who are facing serious allegations including Matshela Koko and Anoj Singh and return to financial sustainability.

Business Leadership South Africa's Themba Maseko says Eskom has a number of immediate challenges to iron out.

“On the next steps is to stabilise management and that’s why we are also welcoming the decision to appoint Mr Hadebe as acting CEO then getting rid of those seniors who have been implicated in state capture and corruption.”

At the same time, Eskom has been warned to publish its financial results before the end of January to avoid the suspension of its bonds by the JSE.

These issues are due to be addressed at meetings this week once the board members and CEO have been inducted.