Transnet, which stabilised its leadership barely six months ago after an almost two-year vacuum, is set for changes again at the top following the appointment of board chairman Mafika Mkwanazi as one of the new non-executive directors at Eskom.
While Mkwanazi remains chairman for now, it is expected that his removal will be made soon, completing the overhaul of leadership at three key state-owned enterprises.
Yesterday, the government announced the new boards of directors at power utility Eskom and defence firm Denel.
When Mkwanazi and the new Transnet board were appointed, there had been an acting chairman for 16 months at the logistics parastatal. The board finalised the appointment of a new chief executive in February, a position that had been vacant for 22 months.
Ellen Tshabalala, a non-executive directors at Transnet, is rumoured to be one of those being considered to chair the board.
According to media reports, Iqbal Sharma, also a non-executive director at the transport and logistics firm, was the preferred candidate of Public Enterprises Minister Malusi Gigaba, but the cabinet would not approve his appointment because of fears that he was too close to the Gupta family.
Mkwanazi and the current board were appointed in December last year, a month after Gigaba took over as minister.
Government spokesman Jimmy Manyi said yesterday: “There are discussions around the Transnet board, yes indeed. There is an annual general meeting coming up… time to assess the board, there is a discussion going on with the cabinet… it is still seized with the matter. As it is right now whoever is chairman of Transnet today continues to be chairman, whoever is a board member today continues to be a board member.”
Transnet will hold its annual general meeting on June 24. Media reports said Mkwanazi had been removed because he knew too much about the business, having served previously as group chief executive, and this could have resulted in clashes between him and current group chief executive Brian Molefe.
Mkwanazi said he was happy and honoured by the appointment and believed that he had a lot to offer. Asked if he believed he could handle both jobs, he said: “I will serve wherever I am needed and it is up to the shareholder to decide.”
At Eskom, the entire board except for two members has been changed. From next month, the new chairman will be Zola Tsotsi, who will replace Mpho Makwana, who has been at the helm for a year.
Tsotsi said one of the immediate challenges would be to ensure that the build programme worked on time and on budget.
Between this year and 2017, Eskom will spend R549 billion adding capacity.
“There is also the issue of governance. Often the relationship between business priorities and shareholder priorities can be confused.
“It is important that there be alignment between management and shareholder mandate, hence communication is essential to ensure that the shareholder sits comfortable,” Tsotsi said.
Media speculation said that Gigaba perceived the Eskom management and board to be too independent.
Tsotsi, who was approached in January, served at Eskom as a corporate environmental affairs manager and head of business and strategic planning between 1995 and 2001.
Makwana would not comment and referred the matter to the department.
At Denel, there are also radical changes, which will see only two members remaining from the previous board.
Zoli Kunene, a board member since 2006, has been promoted to the chairman’s position, replacing Sibusiso Sibisi.
Kunene, a chief executive at Kunene Brothers Holdings, was not available to comment yesterday as he was out of the country. Denel has been struggling for many years, and its turnaround strategy, which began in 2005, is yet to yield the desired results.
In the year to March, the company reported a net loss of R246 million. The department did not explain the reasons for the changes. It said it would issue a statement today. - Business Report