South African power utility Eskom has lost its Chief Financial Officer Bongani Nqwababa at the most crucial time in its history.

According to a SABC report on Tuesday, Nqwababa has resigned.

"He made the announcement yesterday," said the national broadcaster.

"However, he is likely to stay on for up to six months before leaving. Asked what he would be doing after that, he said an announcement would be made in the next few days," it reported.

Attempts to confirm the report proved futile, with no one in Eskom's public relations department available for comment.

But Anglo Platinum (AMS), the world's largest platinum producer, announced that Nqwababa would join the company as CFO and executive director in January 2009.

Considerable experience

A qualified chartered accountant, Nqwababa joins Anglo Platinum with considerable experience as finance director of two large South African companies, Eskom Holdings and Shell SA.

He is also currently a board member of Old Mutual plc and serves as chairperson of the South African Revenue Services Audit Committee.

Nqwababa, who has an MBA in Finance from the Institute of Financial Management in the UK, replaces Norman Mbazima, who was recently appointed CEO of Scaw Metals, Anglo American's diversified steel products business.

But Nqwababa's departure will be felt at Eskom, which is in the midst of raising billions in funding for its expansion programme.

Eskom needs about R343-billion over the next five years to boost capacity and this figure is projected to reach R1.3-trillion by 2026 as Eskom adds 40 000 megawatts to the grid.

Around R300-billion of that was to be raised through a bond while R100-billion was going to be funded by debt.

South Africa's National Treasury has also agreed to provide R60-billion over the next three years to help fund expansion.

Doubts over support

But doubts over government's future financial support and the utility's ability to raise the capital has led to a rating downgrade of Eskom by Moody's.

This, and Standard and Poor's decision to place Eskom on credit watch, may damage Eskom's efforts to secure funding in an already risk-adverse lending market.

Eskom is also battling financially with rising primary energy costs burning a hole in its pocket.

The utility in July posted a significant fall in its profit for the year to end March 2008 with profit for the state-owned utility's 2007/08 year coming in at R974-million versus R6.5-billion posted for the 2006/07 year.

Electricity sales growth was 2.9 percent against 4.9 percent the previous year.

Sapa