Nombasa Tsengwa mounted a vigorous defence after allegations of misconduct and raised questions against fresh conflict of interest questions as she broke ties with Exxaro Resources after more than two decades of services, including three years at the helm.
Tsengwa, suspended in December over alleged workplace and governance issues, had approached the high court in Pretoria on an urgent basis, arguing her suspension was illegal and asking it to hear her claims that the board of Exxaro overstepped its powers by suspending her without a pending disciplinary hearing.
The court rejected her application, saying the matter did not require immediate judicial intervention and that the case presented in her court filing failed to substantiate the pressing need to expedite the proceedings.
The abrupt resignation marks the culmination of a tumultuous few months for Tsengwa — an Eastern Cape, Fort Malan-born PhD graduate in Agronomy — after Sunday Times thrust her into the harsh spotlight in December.
Citing unnamed sources, the publication reported that nine executives had either resigned or been suspended since Tsengwa took over due to her management style and workplace culture. This almost immediately prompted the board to hire ENS, a law firm, to investigate the issues.
Her departure leaves a big hole in Exxaro’s leadership, abandoning the company in the middle of a strategic growth blueprint to sweat its vast coal assets while hunting for new revenue streams to mitigate the risk of stranded assets as the world moves towards decarbonisation.
The strategy of Tsengwa, who was promoted from the company’s coal division, mirrors similar transition risks facing various sectors with Sasol the most striking example in SA at risk of being left behind in the global energy transition. Glencore is in the same boat but its shareholders voted overwhelmingly to keep the coal business, which delivers bumper profits and provides a financial cushion that supports growth in other areas.
In her resignation letter, obtained by Business Day, Tsengwa defended herself against claims of misconduct and fostering a toxic culture, and raised questions behind the shift from the initial accusations to new, specific allegations of conflict of interest.
“What happened to bullying Exxaro employees, toxic culture of fear and resignation of employees because of my tyranny, my interaction with the board of directors, failure to implement the company strategy and other governance misconduct?” Tsengwa said in the letter dated February 5.
"These were the charges I expected from your brief on December 4 2024.”
The new allegations accuse her of conflict of interest by advancing the business interests of her late partner’s company, including facilitating payments and purchases from Exxaro, she wrote. She also faced a charge that she undermined the board’s trust and confidence, or the so-called breach of duty of good faith, when she allegedly instructed her driver to help her partner with personal errands.
“Based on the way this investigation has been conducted ... just demonstrates that there is a predetermined outcome which I refuse to subject myself further to. It is therefore in God’s will that I resign from Exxaro resources as CEO and a director with immediate effect.”
In palpable indignation, Tsengwa recounted in the letter the emotional toll of the “inhumane” interrogation and the public exposure of her private messages with her late partner, which she argued had been twisted to support a false narrative that she was conflicted and had breached the duty of good faith.
“I can state with much humility without any fear of embarrassment and thank God that not a single day of these years have I ever put my own interests ahead of those of Exxaro Resources,” said Tsengwa, who joined Exxaro in 2003 as its manager for safety.
With Dineo Faku
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