FUTURE STRATEGIES
HILARY JOFFE: Eskom seems bright, but will it do right?
Eskom cannot keep borrowing more and more and demanding higher tariffs from an increasingly reluctant regulator
The numbers were bad, but the presentation of Eskom’s long-awaited interims on Tuesday had a completely different feel to anything from the utility in the recent past, and the signals were definitely good. Just 10 days in, chairman Jabu Mabuza and his board, and new interim CEO Phakamani Hadebe have clearly got down to it with the appropriate urgency and resolve. The new board has already met twice and there have been meetings with lenders and investors, who had refused even to talk to the old team but seem willing to advance the new one the R20bn Eskom needs just to service its debt over the next two months, as well as to discuss future options.Crucially, a string of allegedly corrupt executives has been booted out and further action could be taken as the new team investigates more layers of management and more contracts. That speedy, decisive anticorruption action is a major positive signal to the market and public that the new board is serious about fixing Eskom. As important is ...
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