Sasol‘s joint Chief Executives, Bongani Nqwababa and Stephen Cornell will step down at the end of October following a review of its R190 billion Lake Charles project (LCCP) in the US.
The project amount has doubled from the original budgeted amount.
The Lake Charles (LCCP) project has been hit with massive delays and rising costs which Sasol says has tarnished the company.
The current executive vice president of Chemical business at Sasol, Fleetwood Grobler will assume the role of president and CEO from the 1st of November.
An independent board review at Sasol found that the Lake Charles project team acted inappropriately and also lacked experience.
Sasol Chairman, Dr Mandla Gantsho says the board did not find any evidence of misconduct or incompetence on the part of the joint CEO’s.
He says no criminality was identified in the delay or the cost escalation of the project.
Gantsho says the joint CEO’s recognised that the failures at Sasol happened under their watch.
“These two gentlemen have acted out of honour and in recognition that some of what has happened, happened under their watch and some under the watch of their predecessors but anyway they have acted with integrity in putting the interest of the the company first in agreeing to step down even though nothing specific against them has been found.”
Some of the remedial actions undertaken by the board includes the awarding of a zero bonus incentive to the outgoing Co-CEO’s and members of the group executive committee following the Lake Charles project review.
“Initiating disciplinary action against the executive vice president previously in charge of the LCCP and separation with three senior vice presidents with roles in the project. For Financial Year 2019 the joint CEO’s were awarded zero as the value of their short-term incentive. And also for FY 2019 all members of the Sasol group executive committee were awarded zero as the value of their short-term incentive.”
Sasol’s share price went up 12% following the news of the executive transition plan and the release of the company’s financial results.