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POWER CRISIS

André de Ruyter had a year from hell – and then he lost his political cover

As he faced down sabotage, a week of savage attacks by the Mineral Resources and Energy Minister Gwede Mantashe and a grid in freefall on his own, Eskom’s CEO André de Ruyter quit. He has informed board chairperson Mpho Makwana.
André de Ruyter had a year from hell – and then he lost his political cover From left: Energy Minister Gwede Mantashe. (Photo: Julia Evans) | Eskom CEO André de Ruyter. (Photo: Gallo Images / Rapport / Deon Raath) | President Cyril Ramaphosa. (Photo: Gallo Images / Brenton Geach)

Too shredded by the Phala Phala scandal to defend the Eskom CEO, President Cyril Ramaphosa has gone to ground. State Enterprises Minister Pravin Gordhan was not nominated to the ANC NEC and is politically weakened, so he said nothing, too, as Mantashe trashed Eskom and De Ruyter

Mantashe is Ramaphosa’s key to a second term as ANC President because he is a streetfighter with steel-tipped elbows. Mantashe accused De Ruyter of sabotage as Stage 6 load-shedding gripped the country. South Africa has had almost 200 days of rolling blackouts this year, and Eskom has not communicated a daily status update for days. In November, he called De Ruyter a “policeman" who did not have what it took to run the utility.

De Ruyter resigned after a year ended with units dropping like snowflakes from a Christmas Tree in a warming climate. De Ruyter has had his best year and his worst. Energy and energy transmission reform have finally got into gear, and South Africa’s US$8.5-billion JET Investment Programme was lauded at COP27 in Egypt as best-in-class energy transition thinking.

The former Nampak executive has had a storied career with energy experience at Sasol and took the job as an act of national service in January 2020 and as a critical plank of Ramaphosa’s reform agenda. Three years later, he is out, and so is the grid, which is still coal-reliant. De Ruyter had begun the transition, as the graphic shows.

On December 8, two days after Stage 6 load shedding was announced, Eskom launched a battery energy storage project. In November, the World Bank granted SA a concessional loan to fund the transition from coal to clean fuels. On November 2, Eskom made a huge announcement: a Komati unit would be shut down and repurposed as a renewable energy components manufacturer. It was a swords-to-ploughshares moment which was the apogé of his career at Eskom, now cut short by political attacks.  

On October 28, the Eskom updated transmission development plan was released with 53GW of renewables added to the utility’s planned requirement. This would have been key to expanding transmission. 

It was a sea-change of a year for De Ruyter, whose team fought almost daily battles with saboteurs. The right-hand side of the chart shows what he was up against. 2022 has been the worst year on record for power cuts in South Africa and what the chart reveals is that every time De Ruyter and his team took a step-change forward, the saboteurs struck. 

Between October and December (the period tracked by Daily Maverick), staff and contracted drivers were arrested for picking up high-quality coal and swapping it out for lower-grade ore, diesel theft, or active sabotage. The story has been a constant of his nearly three years at Eskom, and he has had enough. De Ruyter had said previously that Eskom and the country could attribute one or two stages of load-shedding to sabotage.

De Ruyter was a coal man with Sasol, where he ran coal, gas and coal plant operations in SA, China, the Netherlands and Germany. But as he told Daily Maverick’s Gathering earlier this year, the “Stone Age did not end because of a lack of stones”.  

The cost of renewable energy has come down substantially, and the world’s energy map is changing fast – the war in Europe and energy crisis notwithstanding. De Ruyter clicked a long time ago that South Africa’s future lies with a radically mixed energy portfolio with renewable energy playing a big role. 

He came to Eskom as a Mr Fixit with a history of turning around failing companies. But with hostile politics and a constant hostile refrain to his race, he has thrown in the towel.  DM/OBP

Comments (10)

Helen Swingler Dec 15, 2022, 11:28 AM

Give us an early Christmas gift and resign Mr Mantashe. It's high time you went to pasture and left the energy future of this country in younger, abler, qualified hands, with an eye on their future. Attending a graduation ceremony yesterday, there were scores and scores of bright young people of all colour and creed, many highly qualified. One can only wonder how they view their future. Unfortunately, this is the inheritance they will receive, having already had to pick the rotten fruits of the apartheid regime. They have been sold down the river once again. As has Mr De Ruyter.

Johan Buys Dec 15, 2022, 12:42 PM

Cowboys don’t cry. If you are paid better part of R1m a month you need a thick skin and you get on with doing the right thing until the shareholders fire you.

Karin Swart Dec 15, 2022, 12:50 PM

De Ruyter never had a chance of success and it had nothing to do with his race or any political back-stabbing. NO-ONE can fix a problem that has been building up for years (since 2009) in so little time. Added to that is the continuous, almost daily sabotage and theft - ESKOM will never be able to recover. And they are broke. Money could be saved by letting at least 30% of the staff (those that don't really do anything) go, immediately disconnecting defaulting customers and municipalities and taking legal steps to recover monies owed and lastly, perhaps the most difficult one, disconnecting all illegal connections and keep on disconnecting them if they "pop up" again. This must all be done IN ADDITION to proper, verified maintenance, maintenance, maintenance.

Gregory Scott Dec 15, 2022, 02:00 PM

Mr. De Ruyter, thank you for your supreme effort. There is no doubt in my mind that there are political and criminal forces involved in treasonous activities to ensure a continued cancerous environment of capture, theft, pilfering, price gouging and many other illegal activities by both staff, contractors and gangsters.

Slightly Irritated Dec 15, 2022, 02:40 PM

Never had a chance the looters are well entrenched in Eskom and the ANC too many “interests”

Fritz Eckl Dec 15, 2022, 04:41 PM

Be strong André, no worries, people like Gwede are political thugs empowered only by the colour of their skin!

kerryvs Dec 15, 2022, 06:12 PM

De Ruyter never stood a chance from the word go. Being a white male and trying to root out corruption, was one of his first mistakes, borne out by the militant head of the trade union who accused him of "targeting" certain " people" (of course using race as the basis of her argument). Eskom is still so rotten to the core, that anyone who tries to " clean up", especially if they are white, will be expelled. As for the communist Mantashe & Gordhan, they are only in it for themselves & are both completely morally bankrupt. At the end of the day, De Ruyter should be relieved to get out of that cesspool & let the ANC plunge us into complete darkness.

Andrew Dec 16, 2022, 10:16 AM

Andre’ De Ruyter’s departure from Eskom is just another misstep in the litany of catastrophes brought upon SA by the ANC. Although their days are numbered, the ANC is irreversibly on its way out. Other attempts by other parties will step in, failing as often as they don’t. Dragging an entire country into modernity and attempting to educate it at the same time is no small task. The deeply embedded culture of patriarchy within SA’s disparate tribal communities will fight at every level to preserve their male-dominated privilege. Empowering women, an important antidote to this repressive regime, will be met with stiff resistance as men, in fear of losing their entitlement, will try to destabilise the empowerment of their women. Taking on the hard work of discarding the unhelpful elements of their own tribal culture in favour of reinventing themselves as relevant, meaningful and contributing members to a new and better society, will be a hard journey, both for themselves and for society at large. Will the journey be worth it? Maybe attempting it is the only reward there is.

John Forbes Dec 16, 2022, 10:18 AM

Amazingly, after promising to drop from Stage 5 to Stage 4 with the announced departure of Andre de Ruyter, we are suddenly back on Stage 6 loadshedding as the reality strikes home. Do not be surprised if shortly after de Ruyter final departure from the premises in three months time, and the Comrades take back total control without any brakes, if we do not have a total Blackout which will take weeks to get the network up and running again. Total failed state, here we come!

SAM VAN WYK Dec 17, 2022, 10:48 AM

The policeman has resigned! aloota continue!