africatodayonline.blogspot.com -
(Updates with comment from Eskom in second paragraph.)
“Eskom can focus on the challenges facing it and sets the company on a new path to regain the confidence of all stakeholders concerned in ensuring the important work of meeting the energy needs of the country,” the Johannesburg-based company said in an e-mailed statement Monday.
Tsotsi’s departure follows the suspension of Chief Executive Officer Tshediso Matona and three other executives, including the finance director, on March 12. Standard & Poor’s lowered Eskom’s rating to junk this month after Tsotsi announced the suspensions and started a probe into the state of the business, including under-performance of generation plants, delays in starting up new facilities, high costs and cash-flow problems.
Tsotsi has been chairman of Eskom since 2011. Matona took office in September after former CEO Brian Dames stepped down in March last year. The personnel shifts have added to the utility’s operational and financial issues. Eskom implemented almost daily rolling blackouts in February as it struggled to provide stable supplies because of technical faults that led to emergency repairs.
The utility is also struggling to plug a 225 billion-rand ($19 billion) cash-flow gap as it faces unanticipated costs including about 1 billion rand a month in diesel to run turbines normally used only for peak demand hours. The utility is seeking higher tariffs to carry on power purchases from companies such as Sasol Ltd. and Sappi Ltd., whose contracts will end on March 31 and will cut supply by 700 megawatts.
Ben Ngubane has been appointed acting chairman, Eskom said.
