Andre de Ruyter under fire

Eskom misdirected itself when it appointed Andre de Ruyter as CEO, with the former chief having no appreciation of what it takes to run a company of that scale.

De Ruyter also had to undergo a steep learning curve regarding how Eskom’s coal-powered fleet operated and what was needed to improve its performance. 

As a result, there was a misalignment between what De Ruyter offered and what was required to lead Eskom out of a turbulent period. 

This is feedback from Electricity Minister Kgosientsho Ramokgopa, who outlined how Eskom has improved its operational and financial performance since early 2023. 

One key aspect of Eskom’s turnaround was the appointment of competent leadership from the board level down to power station managers. 

“At the board level, we have Mteto Nyati at the top and a competent set of men and women with exceptional credentials, who have cut their teeth in the electricity sector,” Ramokgopa told Newzroom Afrika.

These individuals, who know the electricity sector, are coupled with business leaders who have successfully operated complex organisations. 

“They understand the issues of governance and how you steer an organisation the size of Eskom into calmer waters and out of a period of turbulence,” the minister explained. 

In the past, Eskom did not have this when it was led by De Ruyter, with Ramokgopa believing that the utility made a poor choice in appointing him to the top job. 

“I think we misdirected ourselves previously when we got someone at the helm who does not have an appreciation of how to run a utility of this nature,” he said. 

“Really, it is not to cast aspersion, I am just saying there are lessons to be learned and unlearned from that experience.” 

“It goes without saying that the immediate predecessor to Mr Marokane was Mr De Ruyter,” Ramokgopa said, when asked who he was referring to. 

De Ruyter’s misalignment

Since leaving Eskom in February 2023, De Ruyter has been criticised heavily for failing to improve the performance of the utility’s coal fleet. 

Many have pointed to his focus on renewable energy instead of turning around Eskom’s coal plants as a strategic error. 

Ramokgopa explained this thinking further, saying that De Ruyter was not the right man for the job at the time, with Eskom needing to be steered out of turbulent waters. 

“I think there was a misalignment of skills. When you have someone who has not been exposed to an organisation of this magnitude in this area of work, you will have problems,” Ramokgopa said. 

“Without experience in the electricity sector, the learning curve is prolonged, and Eskom was in a crisis, with no time available for a new CEO to learn the ropes.” 

Ramokgopa explained that when you are in a crisis, the only objective can be to get out of that crisis, with no time for someone to learn how the broader sector operates. 

“The intention was to manage a crisis and get out of it. So, you have to have a deep appreciation of how these machines work,” he said.

“You need to know what it is that needs to be done when you preplan for an outage to perform maintenance on a unit, what resources it needs, and other operational knowledge.”

“So, what I am saying is that the moment and the skills were incongruous. There was no alignment of that.” 

Ramokgopa said that he thinks De Ruyter was approaching the job as though Eskom was out of a crisis already, and was thinking of how to improve the organisational culture, governance, and implement different technologies. 

“It is only when you get out of an exceptionally difficult situation, a crisis, that you are now managing a turnaround with regards to governance, an organisation culture, and you can think differently,” the minister said.

“But, you needed someone who had deep expertise in the electricity sector and what was required technically to turn Eskom around. That is the point I am making.” 

“When you are faced with a crisis, you must make sure that you get people with the right skills in the right positions.”