South Africa’s power utility Eskom on Sunday refuted media claims that it is facing a cash crisis and that it has only enough cash to last for the next three months.
The Sunday Times reported that Eskom is sitting on its last R20-billion but wants bonuses to be paid to axed CEO Brian Molefe, suspended acting chief executive Matshela Koko and others.
The Power utility said external auditors have confirmed it as a going concern, and as a result, the company sees “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,” said Eskom in a statement on Sunday.
The power utility added it wanted to highlight that while its financial position has always been supported by significant reliance on debt and borrowings, its improved overall financial and operational performance over the last two years has led to an improved balance sheet.
“Eskom also has sufficient government guarantees to execute its funding plan,” the company said. “Eskom has also maintained access to capital markets and raised committed funding.”
Eskom will announce its operational and financial performance on Wednesday, which had been due to take place last Tuesday.
“Eskom is not in a position to respond comprehensively to the specific issues raised at this stage,” said the company.