Government decision on new Eskom chairman criticised

Johannesburg, South Africa — ESI-AFRICA.COM — 13 June 2011 – The chamber “’ which represents major mining companies in South Africa “’ said it was “deeply concerned” that the government was so keen to remove Eskom’s current chairman Mpho Makwana, after he and Transnet chairman Mafika Mkwanazi had “managed to bring stability to their respective organisations.”

Both these organisations, from the chamber’s vantage point, had seemed to be in turbulence.

“We therefore do not understand the logic behind their removal from office,” said the chamber.

Makwana, who served on the Eskom board since 2002, was made chairman a year ago after a row in which both then-chairman Bobby Godsell and CEO Jacob Maroga left the company.

Chamber of Mines chief executive Bheki Sibiya said while the chamber and its members were fully cognisant of the fact that the matter was an internal one between the shareholders of the two state owned enterprises and their officials, “it would be a dereliction of duty on our part, as major stakeholders in these organisations, to remain silent on this issue given its potential impact on our industry.

“It has been our considered view, as the mining industry, that stability and efficiencies in these two enterprises are critical in ensuring a competitive and growing mining industry, which is important to the economy of the country,” Sibiya said.

The chamber’s comments follow news last week that the chairmen of Eskom, Transnet and Denel “’ three of South Africa’s more powerful state-owned companies “’ are to be removed by public enterprise minister Malusi Gigaba.