South Africa: Eskom Concludes Section 189 Process for It's Top Executive Structure

Eskom Megawatt Park.
23 December 2018
Eskom (Johannesburg)
press release

Following an extensive consultation with its executive management that started on 7 November 2018 and approval of a new executive structure by the Board, Eskom today announced that the process has now been concluded, setting a new course for the organisation to be cost-effective, efficient and sustainable.

The Group Chief Executive Phakamani Hadebe thanked the executives and the Board for their rigorous engagement and support during the process.

“This was not an easy process, and I appreciate the patience and support of all those involved as we worked to conclude matters as efficiently as possible. We have managed to reduce the number of F-Band positions from a total of 21 to 9 by way of regrading or combining roles. The new structure, along with our strategy sets us on a path towards stability, and with an executive team that is refocused on improving operational efficiencies and reducing costs to improve profitability and drive the economy forward,” Hadebe said.

The Group Executives for the Generation, Distribution, Transmission and Group Capital now reflect full accountability for Profit and Loss (P&L) within each of the core businesses, which is a key strategic imperative to drive Eskom’s return to profitability.

The new structure has reduced the number of direct reports for the Group Chief Executive to 10 in the short-term, which will reduce to eight when IT and Procurement are relinked back to the Chief Financial Officer (CFO) in the foreseeable future. In addition, all Senior General Manager roles, which were a person to holder roles, have been eliminated.

These 10 direct reports comprising Operations, Finance & Services, Human Resources, Legal & Compliance, Corporate Strategy & Support, Audit & Forensic, Corporate Affairs, Group Company Secretariat, IT and Procurement will report directly to the Group Chief Executive. Distribution, Group Capital, Transmission, Risk & Sustainability, Eskom Enterprises & ERI, and Africa Strategy will report to the Chief Operations Officer (COO).

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