The South African government\u2019s selection of a white executive to head the state power utility has outraged some unionists and politicians who see the move as a setback to efforts to address the nation\u2019s racial disparities.<\/p>\n
Andre de Ruyter, 51, is due to become chief executive officer of debt-stricken Eskom Holdings SOC Ltd on Jan. 15 and will be the first white person to be assigned the post on a permanent basis since Allen Morgan retired in early 2001.<\/p>\n
Jacob Maroga, who was Eskom CEO from 2007 to 2009, and Dan Marokane, the utility\u2019s former head of group capital, were among the black contenders.<\/p>\n
The National Union of Mineworkers and the National Union of Metalworkers of South Africa, the two largest unions at Eskom, criticized De Ruyter\u2019s appointment as a setback to the country\u2019s racial-transformation agenda.<\/p>\n
And the radical Economic Freedom Fighters, the second-largest opposition party, said the decision was racist and a deliberate attempt to diminish the role Africans play in the economy.<\/p>\n
The criticism is unfounded, according to Ntsikelelo Breakfast, a political analyst at the University of Stellenbosch.<\/p>\n
\u201cThere have been many black people who have had that position at Eskom before. Some have resigned and some have been implicated in serious transgressions,\u201d he said Tuesday by phone.<\/p>\n
\u201cI don\u2019t think that the government or the board have turned a blind eye to transformation as far as Eskom is concerned.\u201d<\/p>\n
While official data shows that white people do dominate the leadership of South African companies, that isn\u2019t the case at state entities.<\/p>\n
The government\u2019s Commission for Employment Equity assessed more than 26,000 companies last year and found almost 70% of top managers were white. By contrast, black South Africans, who make up 81% of the population of 58.8 million, occupied 76% of top government positions.<\/p>\n
Eskom provides about 95% of South Africa\u2019s electricity. It\u2019s amassed R450 billion ($30 billion) of debt that it can\u2019t afford to service, is reliant on government bailouts to remain solvent and is battling to produce enough power to meet demand.<\/p>\n
De Ruyter, who holds a law degree and a masters\u2019 degree in business administration, has considerable corporate experience, though not at state-owned companies.<\/p>\n
He\u2019s been CEO of packaging firm Nampak Ltd since 2014 and prior to that worked for more than two decades at petrochemical giant Sasol Ltd, where he held a number of senior management roles.<\/p>\n
The Public Enterprises Ministry, which oversees Eskom, said it employed a recruitment company that identified 142 potential candidates to fill the CEO post and it drew up a shortlist of 17 people. The utility\u2019s board interviewed six of them, and submitted three names to the cabinet, which made the final decision.<\/p>\n
Lobby groups Business Unity South Africa and the Black Business Council both said De Ruyter was appointed after a thorough process and they were committed to working with him.<\/p>\n
\u201cInasmuch as the country\u2019s transformational agenda should be supported, critical positions should be filled based on merit,\u201d said Sethulego Matebesi, a political analyst at the University of the Free State.<\/p>\n
\u201cWe should avoid turning every issue into a political hot potato. Does the new Eskom CEO has the requisite experience and skills? If so, let us support him irrespective of his color.\u201d<\/p>\n