The company has seen several key executives resign in recent months. From Moneyweb.
Exxaro CEO Nombasa Tsengwa has been placed on precautionary suspension with immediate effect while investigations into her “workplace conduct and governance practice” are underway, according to a Sens announcement on Wednesday.
“The Board believes that this decision is in the best interests of both the company and Dr Tsengwa,” says the announcement.
Tsengwa will step back from all executive and Exxaro board duties while under investigation.
Accusations
Exxaro would not comment further on the reasons for the suspension. However, Business Times reported on a letter written by Tsengwa to employees proclaiming her innocence in the face of accusations of abuse of power and instilling a culture of fear.
The letter also references an internal investigation apparently launched after an anonymous whistleblower complained of a series of suspensions of executives and senior managers.
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“Our board has been proactive in dealing with such matters and found no wrongdoing or breach of the code of conduct in suspending the employees,” wrote Tsengwa, Exxaro’s first female CEO.
Resignations, suspensions and gardening leave
Business Times reports that among the resignations from the group are Alex de Angelis, executive head of strategy; Bathabile Ponu, the chief internal auditor; and Louis Retief, executive head of information management. Roland Tatnall, former MD of Cennergi, the company’s renewable energy business, also departed. The head of coal, Kgabi Masia, has also reportedly been suspended.
Company secretary Andiswa Ndoni is reportedly on suspension, while chief investor relations officer Ling-Ling Mothapo has been placed on “gardening leave”.
Koppeschaar takes over
Finance director Riaan Koppeschaar will take over as acting CEO while continuing to hold the finance post.
Says Exxaro chair Geoffrey Qhena: “The board is fulfilling its fiduciary duties by taking decisive steps to act in the best interests of the company and stabilise its leadership, while it conducts an appropriately thorough and independent investigation in line with company values and policies.
“Riaan Koppeschaar has deep knowledge of the company and industry and is well placed to act as CEO having spent the last eight years as Exxaro’s Finance Director.
“He will be supported by a highly experienced management team, many of whom have been with the company for decades, and a seasoned board. Together they are well placed to stabilise and lead the company by focusing on meeting customer demand, driving safe, disciplined and efficient production, while creating value for our stakeholders.”
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Koppeschaar, a 30-year mining veteran, previously held various managerial roles at Iscor and Kumba Iron Ore. He is a chartered accountant, a graduate of INSEAD’s Advanced Management Programme, and holds certificates in taxation and treasury management.
Slow move to decarbonise
Among the complaints against Tsengwa is the group’s slow move to decarbonisation.
The latest Sens announcement addresses this: “The Board and management team will continue to implement our strategy of maximising the value of our current assets, while undertaking a measured and responsible transition from a coal based to a diversified minerals and renewable energy solutions business that will thrive in a low-carbon future.”
