New independent directors must be appointed for Necsa board to be quorate
Following the resignation of five board members from the South African Nuclear Energy Corporation (Necsa) last week, Electricity and Energy Minister Dr Kgosientsho Ramokgopa will need to appoint new independent directors to ensure that the board is quorate.
Necsa chairperson Dave Nicholls, who has not resigned, confirmed with Engineering News that the five individuals resigned because of their unhappiness with the implementation of salary increases for senior executives.
Nicholls said the salary and pay-progression policy had been benchmarked using outside advisers and that its implementation had been delegated to CEO Loyiso Tyabash.
Nicholls said he continued to back Tyabash, who he said was steering a turnaround of the State-owned enterprise, which he said would report a profit when its results were released in Parliament later this month.
Necsa had previously been a serial lossmaker, but Nicholls said most of the units were starting to perform and had received clean audits, apart from Pelchem, which was still making losses and had also received a qualified audit opinion.
The Necsa board is meant to comprise ten members, including the CEO, shareholder representatives from the Department of Electricity and Energy (DEE) and the Department of International Relations and Cooperation, and seven independent nonexecutive directors.
Three independent directors were among the resignations, alongside the DEE shareholder representative and their alternative.
To form a quorum, five independent directors must be present, which is not currently possible and resulted in a board meeting planned for last week being abandoned.
The Minister is reportedly considering replacement candidates from a list drawn up in preparation for the appointment of the new Necsa board in 2026.
However, this had not been confirmed with the DEE by the time of publication.
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