Eskom denies it is cash-strapped

Broken light bulb

Broken light bulb

The power utility's board has reportedly written to Public Enterprises Minister Lynne Brown proposing that Molefe receive a R2,1 million bonus for the eight-month stint he served in the 2016/2017 financial year before his sudden resignation late last year, the Sunday Times reports. "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.

The power utility said that "external auditors have confirmed Eskom as a going concern and, as a result, the company sees these reports as being inaccurate and misleading..."

The parastatal also said it wanted to highlight certain points, including that "whilst Eskom's 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 has also maintained access to capital markets and raised committed funding.

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.

The problem is, while Eskom wants to pay this huge amount to execs, it may not even be able to pay basic employee salaries by November, according to Sunday Times.

According to the newspaper report, Eskom is in a "precarious financial position" and only has R20bn left.

Koko has been on special leave since May, pending an investigation into an apparent conflict of interests, while a legal battle continues into the reinstatement and subsequent removal of Molefe.

The board's request for R13 million in bonuses for top executives at Eskom has emerged amid allegations that the power utility is broke - less than three years after receiving a R23 billion bailout by former finance minister Nhlanhla Nene.

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