Johannesburg - The resignation of power utility Eskom's chairperson and return of its chief executive signalled an end to a leadership drama that erupted last week, but analysts say it could unnerve foreign investors.

Eskom chairperson Bobby Godsell had announced chief executive Jacob Maroga's resignation to the utility's staff last Thursday, but the chief executive returned to work on Monday, an Eskom spokesperson confirmed.

In a dramatic turn of events, Godsell himself stepped down on Monday, the department of public enterprises (DPE), which oversees Eskom, said.

"Mr. Godsell has resigned. The minister received his letter this morning," said Ayanda Shezi, a spokesperson at the DPE.

Analysts said the management crisis should have been resolved within the board, without dragging the debate across the local media and giving the impression that the crucial entity lacked the top management it needed.

Ulrich Joubert, an economist at Kruger International, questioned whether Godsell's resignation reflected political pressure, which in turn could affect investors' willingness to fund the utility, already struggling to raise the billions of rands it needs to fuel its expansion.

"International investors don't like political intervention ... if Godsell resigned because of political interference in the managing of the business, then it's bad for Eskom and they will have to pay more to get the funding they need," he said.

Minister for Public Enterprises Barbara Hogan, under whose jurisdiction Eskom falls, said last week that she was trying to resolve a breakdown in relations between the board and Maroga.

Vytjie Mentor, chairperson of parliament's portfolio committee on public enterprises, told Reuters that Maroga wrote a letter to the minister on Monday.

"(He said) he was at work doing his duty as CEO and as a member of the executive board. He didn't make any reference to having resigned or anything like that," she said.

Maroga's tenure has been marked by power shortages, a record loss of R9.7bn in the year to March and electricity price rises criticised for stoking inflation as South Africa battles recession.

Bumping of heads

Maroga has led Eskom in one of its most difficult periods, characterised by a low power reserve margin, rising capital and operating costs and coal procurement problems.

Management issues at the utility have been widely commented upon by the opposition, interest groups and unions, but Godsell, the minister and Maroga have yet to explain what happened in the boardroom over a week ago.

One analyst said the confirmation of Godsell's resignation could give some clarity on the utility's future direction.

"These are two very strong leaders ... and the bumping of heads between those two was certainly not contributing towards the sustainability of projects being implemented, and it become clear that either one had to go," said Cornelis van der Waal, an energy analyst at consultancy Frost & Sullivan.

"Maroga's short-term goal should be to stabilise the current development, to fill the key positions that are open and make sure that everything is on track in regards to the expansion."

- Reuters