Eskom hopes to gain trust from local banks

Reading Time: 2 minutes

Eskom hopes with sweeping changes announced at the power utility, it will be able to gain trust from local banks to re-open lending facilities.

Eskom Spokesperson Khulu Phasiwe says National Treasury will support the power utility’s bid to persuade banks to lend the utility R20 billion.

News of the changes at the power utility have been welcomed far and wide, with may saying the changes will remove the rot, strengthen corporate governance and put the power utility on a path to financial stability.

Phasiwe says on average the power utility needs to have reserve funds of at least R20 billion to be able to operate without financial strain.

But he says at the moment the funds are running low.

However, reactions continued to pour in regarding the changes at the power utility.

Professor Raymond Parsons of the school of business and governance at North West University says while there is no quick fix for the long-standing problems at Eskom, this is a step in the right direction.

The Black Management Forum says effective governance will encourage better operational and financial decision making, efficient use of resources and will strengthen accountability from officials.

Others say the changes are long overdue.

Meanwhile, Eskom says an induction process for the new board and new acting group CEO will be held as soon as possible.

As per government directive, former acting CEO Matshela Koko did not report for duty at the power utility. Him, together with suspended CFO Anoj Singh, will appear before parliament’s portfolio committee on public enterprises on Tuesday.


Click video below: