By Johnathan Paoli
The National Union of Mineworkers (NUM) has strongly condemned the appointment of Ben Magara as the new CEO of Exxaro Resources, accusing the company’s board of acting in bad faith and shielding corruption within its leadership.
The controversy stems from the suspension and subsequent resignation of former CEO Nombasa Tsengwa, whom NUM describes as a champion for workers’ rights.
According to Highveld Regional Secretary Tshilidzi Mathavha, Tsengwa’s commitment to insourcing core business operations at Exxaro created sustainable jobs for employees, a move that allegedly clashed with the board’s interest in outsourcing for self-enrichment.
“The feeling of our members on the ground was that Nombasa Tsengwa would remain the darling of the workers and workers are willing to do anything to have her back at Exxaro as it is clear that her suspension was unjust and unfair,” the regional secretary said.
Mathavha expressed the union’s frustration, stating that Exxaro’s board failed to engage with NUM members, who constitute over 80% of the company’s workforce, before making the decision.
NUM alleges that the board orchestrated Tsengwa’s removal to protect Kgabi Masia, a senior executive accused of financial mismanagement.
Mathavha argues that Masia is responsible for excessive coal transportation costs to Maputo, which have exceeded industry standards by 40% and instead of holding him accountable, the board used Tsengwa as a scapegoat.
He raised concerns about Magara’s alleged conflict of interest, claiming that Grindrod, a company where Magara serves as a director, was unfairly favored as the sole logistics provider for Exxaro, allowing it to monopolise trucking, railing, and loading coal at exorbitant costs.
Given Magara’s involvement in Exxaro’s logistics subcommittee, NUM believes his leadership will only serve to shield these dealings from scrutiny.
NUM criticises Magara’s past leadership at Lonmin, where he served as CEO following the 2012 Marikana massacre.
Mathavha claims his tenure was marked by mass retrenchments and disregard for workers’ voices, fearing that under Magara’s leadership, Exxaro will prioritise corporate interests over employees, leading to job losses and increased outsourcing.
The union points to Magara’s business ventures in copper, manganese, lithium, and coal, questioning how he can fairly lead Exxaro while maintaining conflicting financial interests.
NUM argues that his swift appointment, just four weeks after Tsengwa’s resignation, was pre-planned to facilitate the board’s hidden agenda.
Frustrated by the board’s refusal to engage meaningfully, NUM has vowed to escalate the matter to Exxaro’s shareholders, warning that Magara’s appointment poses significant risks to both workers and investors, as it signals an unwillingness to root out corruption.
“We have no confidence that Ben Magara and the board will expose Masia’s misconduct. The rushed report on Tsengwa’s suspension compared to the prolonged, unresolved investigation into Masia’s irregularities makes it clear that the board is protecting its own interests,” Mathavha said.
He called for an urgent review of Magara’s appointment and insists on a transparent, fair process to address corruption at Exxaro, arguing that ignoring these concerns will only deepen mistrust between workers and management, potentially leading to industrial action.
As Magara prepares to assume leadership at the beginning of next month, he faces a highly contentious environment.
With NUM firmly opposed to his appointment, his tenure at Exxaro is likely to be fraught with conflict, raising questions about the company’s commitment to ethical governance and worker welfare.
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