CAPE TOWN - Power utility, Eskom is battling to finalise its interim financial statements because of growing concern of its capacity to refinance maturing debt, reports Business Day.
The long-awaited statements for the six months to September is expected by the end of this month.
The state owned enterprise (SOE) is meanwhile expected to go to the international market later this month with a R12.3 billion bond issue. If the issue is successful, this will provide some content to lenders to roll over existing debt.
However, the bond issue may be dependent on the interim financial statements. Therefore, if Eskom fails to release its statements in due time, it can impact on whether they can go to the market.
Just yesterday, Eskom said that it "remained committed to releasing these results on or before 31 January".
This assertion came after the JSE warned that it would suspend trade in its listed bonds if Eskom did not provide the market with the expected information by the end of this month.
At the backlog of this current debacle, Eskom’s newly appointed board last year had to face the music of a company in financial ruin.
With just R1.2 billion of liquidity reserves in November, which was expected to last until the end of the month, the company fell short of their R20 billion target.
In a report handed to the minister, the financial woes of the SOE was attributed to poor governance.
"Once in the open, a way forward can be paved for addressing the issues and potential future investment", said Eskom spokesperson in November last year, Khulu Phasiwe.
Meanwhile, Suspended Eskom head of legal services, Suzanne Daniels, on February 11 slammed her suspension, branding her removal from the power utility unfair, procedurally incorrect and a mockery.
Daniels wants the power utility to pay her legal bills and to compensate her for reputational damage. Eskom has suspended Daniels over, among others, a breakaway session at Kievits Kroon, outside Pretoria, for 20 staff members that cost R66000. Daniels ultimately settled the bill.
Daniels has taken her suspension to the Commission for Conciliation, Mediation and Arbitration (CCMA). She told the CCMA that her suspension in early October was a ruse to get her out of Eskom after she wrote a damning report on the controversial McKinsey and Trillian Capital Partners contract.
- BUSINESS REPORT ONLINE