Eskom: Cyril Ramaphosa backs appointment of Andre de Ruyter

At the Black Business Council, President Cyril Ramaphosa has, for the first time, backed the controversial appointment of Eskom Group CEO, Andre de Ruyter.

Cyril Ramaphosa: Andre de Ruyter will bring stability to Eskom

Ramaphosa led opening remarks at the Black Business Council meeting that was held at the Union Buildings, in Tshwane, on Thursday.

One of the things he touched on, deep into his address, was the critical importance of strengthening governance at state-owned enterprises. This, he said, was the key approach to “restoring their finances to health.”

At the centre of this, was the controversial appointment of Andre de Ruyter as Eskom’s new Group CEO, a position that was made available after Ramaphosa unveiled the plan to unbundle the power utility.

His tenure as the CEO of Nampak has been called into question. However, Ramaphosa told delegates at the meeting that this time around, Andre de Ruyter would be coming into a situation that is set up for him to steer the utility into the right direction.

“The Eskom board, working with government, continues to pursue a turnaround plan to address its huge debt, its liquidity problems and its operational challenges. 

“The appointment of a new permanent Group Chief Executive at Eskom is an important step towards restoring stability and forging a sustainable path at this strategic entity,” Ramaphosa noted.

What is the new CEO’s main objective?

Andre de Ruyter will appreciate the confidence shown to him by Ramaphosa. The new Eskom Group CEO is expected to take the helm from Jabue Mabuza, on 15 January 2020.

He has the mammoth task of steering the turnaround of a power utility that has, for the most parts of the last two years, struggled to maintain control of the energy grid.

De Ruyter will also be expected to initiate the unbundling of Eskom into three separate entities, which he will oversee. The pressure that comes with having to be held accountable for the possible loss of thousands of jobs cannot be understated.

However, a source close to the CEO, who spoke, in confidence, to the Daily Maverick, has warned that De Ruyter is no pushover, and that he may be the best personality on Esko’s board to take the helm at this crucial stage of the state parastatal’s existence.

“He’s not a pushover by any stretch, he’s tough. Very fair and rationale,” the source said.

Another former employee that worked under De Ruyter described him as an honest, harworking businessman.

“He’s probably one of the most impressive leaders I have worked for. There’s not a hint of scandal about him, and he will not stomach the faintest scandal and interference. Andre’s very strong. He was very well regarded at Sasol, and is an incredibly bright businessman,” he said.