The latest Eskom financial report presented to the government shows that the power utility will have only R1.2bn in its cash reserves at the end of November. This paints a grim picture of yet another state entity facing collapse as a result of financial mismanagement and corruption.
With limited cash available, Eskom might soon need to approach the Treasury to finance a bail-out. The government should never have allowed the utility’s finances to get to this point. Worse, Eskom is now struggling to access planned domestic and foreign funding for the rest of the 2017-18 financial year. This means its status as a going concern is at risk.
Eskom’s poor governance and leadership record, combined with the fact that it has been captured by corrupt elements, is putting the utility under intense scrutiny from ratings agencies. SA cannot afford another downgrade, nor can we afford for Eskom to go into financial ruin.
The disintegration of corporate governance at Eskom has been of grave concern to potential investors, who have indicated that Eskom must be cleaned up to ensure financial stability.
The DA will now write to the chairwoman of the public enterprises portfolio committee to urgently call Public Enterprises Minister Lynne Brown, as well as the CEO, chief operating officer, interim chief financial officer and chairman of the Eskom board, to present an accurate picture of the financial situation Eskom finds itself in and its plan to move it out of its liquidity crisis.
Natasha Mazzone, MP