NEW information had emerged regarding Exxaro Resources CEO Nombasa Tsengwa’s conduct warranting her suspension despite the board previously exonerating her, the firm’s chair Geoffrey Qhena told sell side analysts in a meeting this week.
The new information relates to a recent complaint separate to a board investigation that took place six months ago, Qhena is said to have told analysts.
The investigation, which will be carried out by law firm ENS and could take several months to complete, was not looking into possible fraud, however.
Separately the board was also looking into circumstances relating to the suspension of Exxaro’s head of coal, Kgabi Masia.
A proposal to diversify Exxaro into other commodities, possibly manganese, was a board matter and would therefore not be affected by the events surrounding Tsengwa.
Exxaro announced on Wednesday that Tsengwa, CEO since 2021 (including the period when she was CEO-elect), had been suspended owing to governance and work conduct issues. It came following a spate of senior executive suspensions and resignations.
Tsengwa would “step back from all executive and Exxaro board duties” during the period of the investigation.
“The board takes any such allegations and resultant investigations very seriously but makes no presumption as to its conclusion,” it said. “The company will be guided by the outcome of investigation before taking the appropriate action, if any.”
Exxaro finance director Riaan Koppeschaar would be interim CEO during this time.
Roland Tatnall, who was the MD of Cennergi, the group’s renewable energy business, Vanisha Balgobind, former executive head of human resources, and the person who replaced her in an acting capacity, Hemuna Bhola have all left the company, said Business Times which first reported on the matter.
Others who resigned are Alex de Angelis, executive head of strategy; Bathabile Ponu, the chief internal auditor; and Louis Retief, executive head of information management, said Business Times. Andiswa Ndoni, the company secretary, is on suspension, while chief investor relations officer Ling-Ling Mothapo has been placed on gardening leave.
Former and current executives who spoke on condition of anonymity to Business Times alleged Tsengwa had created a culture of fear. They also bemoaned the slow pace of executing on group strategy to diversify into green metals, including manganese, to reduce Exxaro’s over-reliance on coal revenue, said the publication.
