Cash-strapped oil company PetroSA divorces CEO Pragasen Naidoo

Financially struggling state-owned oil company PetroSA has separated with its CEO Pragasen Naidoo only two years into his contract under circumstances the company says it will not disclose. 

Naidoo, a chemical engineer and a former group chief of operations at PetroSA’s holding company, the Central Energy Fund, was appointed in January 2020. 

He was the first permanent CEO since 2014 but has parted ways with the embattled and cash-strapped PetroSA as he had three years left on his contract.

Media reports in South Africa suggest that Naidoo has received a large settlement from the parastatal, PetroSA, and the chairman of the board of PetroSA Nkululeko Poya refused to give a comment on the matter.

News24 reports that Poya said the matter was private and confidential as it was between the employer and an employee – Naidoo also declined to comment.

“Naidoo’s departure follows the resignation of the board that appointed him. The board, headed by Frans Baleni, a former director of the Development Bank of Southern Africa (DBSA), served for only a year until asked by the CEF to resign because the holding company had plans to restructure the group. CEF then appointed some of its own directors, including Poya, to serve on the Petrosa board,” said the publication.

“PetroSA is technically insolvent and has made large losses for several consecutive years. However, it has continued as a going concern in the faith that its turnaround strategy would bear fruit. Over the past year, it has retrenched about 400 staff, mostly on a voluntary basis.”

As the company decided to remain mum on Naidoo’s departure, the business sector will keep an eye on the developments as far as the new appointment is concerned.

Main Image: PetroSA/eNCA