Eskom denies crisis, says all will be clear

STATE-OWNED power utility Eskom yesterday denied media reports that it was facing a cash crisis.

Eskom said it had noted weekend media reports concerning its financial sustainability.

“Due to limitations around disclosing financial information before the official announcement, which is scheduled for Wednesday, July 19, Eskom is not in a position to respond comprehensively to the specific issues raised at this stage.

“Having said this, Eskom rejects the notion that it is facing a cash crisis and that it has only enough cash to last for the next three months,” it said.

External auditors had confirmed Eskom as a going concern and as a result the company considered these reports as being inaccurate and misleading.

“It is important to reiterate that Eskom is not facing any liquidity challenges and that the company is confident that it will maintain sufficient liquidity to support its operations”, it said.

While Eskom’s financial position had always been supported by significant reliance on debt and borrowings, but its improved overall financial and operational performance over the past two years had led to an improved balance sheet.

Guarantees

Eskom also had sufficient government guarantees to execute its funding plan, and had also maintained access to capital markets and raised committed funding, Eskom said.

“As stated above, the details about Eskom’s operational and financial performance will be announced on Wednesday.

“Members of the media and other key stakeholders have been invited.

“Eskom will continue to meet with a number of stakeholders ahead of releasing the results this week,” the utility said.