The embattled boss of coalminer Exxaro has written to employees proclaiming her innocence as she faces accusations of abuse of power and instilling a culture of fear.
In a note to all staff, sent on Monday, Nombasa Tsengwa said the board had conducted an internal investigation after an anonymous whistle-blower complaint into a string of suspensions of executives and senior managers, and found no wrongdoing on her part. “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,” she wrote.
It is understood, however, that the Exxaro board has appointed a top forensic firm to further probe the allegations made by a string of executives, many of whom have since left the company.
It held a meeting on Wednesday where complaints about Tsengwa’s leadership were placed on the agenda.
Board chairman Geoff Qhena declined to comment when contacted on Friday, referring Business Times to the letter released to staff.
Last week Business Times reported that nine executives had resigned in frustration or been suspended since she took over in August 2022. This included the dramatic suspension of the head of coal operations Kgabi Masia while on a work trip in Switzerland.
I have served the Exxaro family with humility and dignity for over 21 years with an unblemished record working in many different roles. Therefore, I am committed to continuing to serve the interests of our shareholders, stakeholders, and you our employees; fostering a healthy culture within the organisation while striving to set very high-performance standards,
— Nombasa Tsengwa's note to staff members
Former and current executives who spoke on condition of anonymity 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.
However, Tsengwa, who is also president of the Minerals Council South Africa, said in the note to staff posted on Monday she had been cleared by an independent law firm of allegations emanating from an anonymous tip-off accusing her of bullying, favouritism, instilling a culture of fear and intimidation, and disregard for governance.
She also said the board expressed full confidence in her leadership to execute the group’s sustainable growth and impact strategy, at the centre of which is the need for the coal miner, which has a R12bn -R15bn cash pile, to diversify its portfolio through acquisitions.
“I have served the Exxaro family with humility and dignity for over 21 years with an unblemished record working in many different roles. Therefore, I am committed to continuing to serve the interests of our shareholders, stakeholders, and you our employees; fostering a healthy culture within the organisation while striving to set very high-performance standards,” she wrote.
Executives who have jumped ship since Tsengwe took over include 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.
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. Andiswa Ndoni, the company secretary, is on suspension, while chief investor relations officer Ling-Ling Mothapo has been placed on gardening leave, and it wasn’t clear if she would return to work.
However, an Exxaro employee who spoke to Business Times this week, alleged the culture of bullying was continuing at the company. “There are a number of people who have gone through mental health issues and been admitted to mental institutions based on the treatment [at Exxaro],” said the employee who spoke on condition of anonymity
“What I’m saying is that if the guys on top are feeling what they’re feeling, it goes down to the bottom. So, it’s not only the executives [who are bullied]. What makes it difficult for the business to deal with bullying is that I’m being bullied as well, as an executive, so what do I do? I bully my subordinates, and my senior subordinates then bully those on the ground.”
Asked for comment, the Government Employee Pension Fund (GEPF) — a major shareholder in Exxaro — said it engages investee companies and boards directly on matters relating to its investments in them. “The board of Exxaro has a fiduciary responsibility to act in the best interest of the company, to ensure that corporate governance standards are adhered to and to maintain the trust of shareholders. Therefore, the GEPF, as a shareholder, believes the board of Exxaro is capable of looking into the matter as the body charged with governance of the company.”
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