Picture: REUTERS
Picture: REUTERS

Eskom has rejected a Sunday Times report claiming that it is "broke" and has only enough cash to last it for the next three months.

"External auditors have confirmed Eskom as a going concern, and as a result the company sees these reports as being inaccurate and misleading," the power utility said in a statement on Sunday.

"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."

According to the newspaper report, Eskom is in a "precarious financial position" and only has R20bn left. If no remedies were found, it might not be able to pay November salaries.

Eskom said it was constrained in replying in full to the newspaper report as it was only due to release its annual financial statements on Wednesday, where it would announce details of its operational and financial performance.

However, the parastatal noted that whilst its financial position had always been supported by significant reliance on debt and borrowings, its improved overall financial and operational performance over the last two years had led to an improved balance sheet.

Furthermore, it noted that it had sufficient government guarantees (amounting to R350bn) to execute its funding plan and had maintained its access to capital markets.

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