{"id":810940,"date":"2025-02-09T06:24:44","date_gmt":"2025-02-09T04:24:44","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=810940"},"modified":"2025-02-09T06:24:49","modified_gmt":"2025-02-09T04:24:49","slug":"ceo-battle-is-bad-look-for-r62-billion-giant-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/810940\/ceo-battle-is-bad-look-for-r62-billion-giant-in-south-africa\/","title":{"rendered":"CEO battle is bad look for R62 billion giant in South Africa"},"content":{"rendered":"\n

The recent resignation of Nombasa Tsengwa as CEO of Exxaro is not a good look for the company. <\/p>\n\n\n\n

Tsengwa resigned with immediate effect from her position on Thursday, 6 February, after failing to get a suspension she was placed under in December lifted. <\/p>\n\n\n\n

Tsengwa has served as CEO of the group since August 2022 and was a previous winner of the Standard Bank Businesswoman of the Year Award.<\/p>\n\n\n\n

She was placed on precautionary suspension in December 2024 until an investigation into allegations by ENS over her conduct was finalised. <\/p>\n\n\n\n

The allegations were related to workplace conduct and governance practices.<\/p>\n\n\n\n

Although she approached the Pretoria High Court seeking to challenge her suspension, a judge on Wednesday, 5 February 2025, ruled that the matter was not urgent.<\/p>\n\n\n\n

As reported by the Business Times<\/a>, a source close to Tsengwa said that personnel information was included in the charge sheet delivered earlier in the week, which was not part of the investigation’s scope. <\/p>\n\n\n\n

The source called the investigation a personal attack on the former CEO. The investigation is expected to be concluded soon, with a report set to be submitted to the board. <\/p>\n\n\n\n

Moreover, the source claimed that the board supports\u00a0Kgabi Masia, the head of coal operations, who was served a suspension notice by Tsengwa while on a work trip to Switzerland in November.<\/p>\n\n\n\n

The CEO and board conflict could have bad results for the coal miner, which has a market cap of R62 billion. <\/p>\n\n\n\n

Yonelisa Petse of Aeon Investment Management criticised how the board of the coal miner handled its disagreement with Tsengwa.<\/p>\n\n\n\n

Petse said that the situation raises questions about the board’s oversights and why these issues weren’t addressed earlier. <\/p>\n\n\n\n

The oversight of the board has thus been brought into question with the allegations, which may be true or not. <\/p>\n\n\n\n

He said that investors will likely exercise caution when dealing with the company. <\/p>\n\n\n\n

Although the company’s survival is unlikely to be threatened due to its essential role in the energy sector, investor caution could lead to a governance overhang, increased M&A risk and valuation impacts. <\/p>\n\n\n\n

The battle between Tsengwa and the company may also continue, with the former CEO unhappy with how the disciplinary process was handled. <\/p>\n\n\n\n

Meanwhile, the fight between Exxaro and Tsengwa might not be over.<\/p>\n\n\n\n

Her resignation also comes amidst a major shift from the company as it looks to diversity away from coal, which is the dirtiest fossil fuel. <\/p>\n\n\n\n

Following the failure to purchase a copper mine, the company is looking into investing in manganese, which is essential for steel, iron and electric car production. <\/p>\n\n\n\n

The company has reportedly discussed the potential acquisition of the Tshipi Borwa mine in the Northern Cape. <\/p>\n\n\n\n

CFO Riaan Koppeschaar will continue as acting CEO until a permanent replacement is found. <\/p>\n\n\n\n

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The tiny municipality in South Africa where people earn more than R500,000 a year<\/a><\/blockquote>