New Board at Eskom Wins Cabinet Approval
South Africa's cabinet has approved a new board at Eskom, the public enterprises ministry said on Friday, adding that the minister expects the state power utility to take decisive action to address governance issues.
Eskom has been at the heart of allegations of illegal contracts and undue influence in awarding tenders to the Gupta family, friends of President Jacob Zuma.
Zuma and the Guptas have denied any wrongdoing.
The ministry said the new Eskom board comprised seven interim board members, as well as new members Malegapuru Makgoba and Tshepo Mongalo.
Makgoba is the current health ombudsman of South Africa, while Mongalo is an academic and expert in company law, the ministry said.
"These arrangements provide continuity at a difficult time for Eskom and I urge the board to be strong in the face of adversity and remain diligent," public enterprises minister Lynne Brown said.
Appointing a new chief executive is a priority, Brown said.
Credit ratings agencies say state firms such as Eskom should be reformed and cite the cost of propping them up as a threat to public finances.
Reporting by Mfuneko Toyana and Alexander Winning
