André de Ruyter under investigation for alleged irregularities

[Nat Quinn]

Eskom’s new board was investigating outgoing CEO André de Ruyter for alleged procurement irregularities before his resignation.

This is according to the Sunday Times, which reported that the investigation involves the appointment process that ultimately led to Stephen Meijers being named the COO of Eskom Rotek Industries — a subsidiary of Eskom.

According to the allegations, De Ruyter held initial discussions with a headhunting firm and negotiated a price for its services without following Eskom’s procurement policies or the Public Finance Management Act.

The headhunting firm, Woodburn Mann, was allegedly not contracted by Eskom, yet De Ruyter began discussions with them about Meijers’ appointment in January 2020 — his first month as Eskom CEO.

Additionally, the position that Meijers was appointed to was allegedly only created three months after De Ruyter initiated his discussions with Woodburn Mann.

Woodburn Mann managing director, Andrew Woodburn, told the Sunday Times that his company has worked with Eskom for 30 years and had already undergone two audits over the Meijers situation — neither of which found anything untoward.

Insiders also told the Sunday Times that the new board has been investigating De Ruyter since its appointment, and claimed that these board members had been tasked with finding “any” dirt on him.

De Ruyter resigns

De Ruyter announced his resignation from his position as Eskom CEO on 14 December 2022.

He had notified the Eskom board chairperson of his intention to do this earlier in the week.

“Mr De Ruyter has agreed to stay for an additional period beyond the stipulated 30-days’ notice to ensure continuity while we urgently embark on search for his successor. His last day at Eskom will be 31 March 2023,” Eskom board chair Mpho Makwana said.

“On behalf of the Eskom Board, executive and the entire Eskom staff, I thank De Ruyter for his extraordinary service to the people of South Africa. I also thank De Ruyter’s family for supporting the Group Chief Executive during the tumultuous period.”

Public enterprises minister Pravin Gordhan also acknowledged the efforts of de Ruyter as Eskom CEO.

“André has carried an enormous burden on behalf of South Africa. I want to thank him for his sacrifice and resilience in a difficult job,” said Gordhan.

Pravin Gordhan, Minister of Public Enterprises

Resignation won’t fix Eskom

David Richard Walwyn, Professor of Technology Management at the University of Pretoria, believes that de Ruyter’s resignation is a “huge setback” for Eskom.

“Now, successful prosecution of those responsible for corruption, unbundling of Eskom, and the transformation of generating units into an integrated and environmentally sustainable organisation are under severe threat,” said Walwyn.

“It is a tragedy to see the departure of a high calibre team, including Jan Oberholzer, the chief operating officer, and the general executive for generation, Rhulani Mathebula, that made earnest efforts to keep the lights on.”

“Now, it is up to the board to find courageous and energetic replacements who can regain the country’s confidence in the ability of this government to run a state-owned utility.”

 

André de Ruyter under investigation for alleged irregularities (mybroadband.co.za)

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