Eskom problems overstated: Molefe

[miningmx.com] – NEWLY appointed acting Eskom CEO, Brian Molefe, said the power utility’s problems had been overstated, and that it was not about to go bankrupt.

In comments to the South African parliament’s portfolio committee on public enterprises, Molefe said that Eskom provided power to 96% of the population at any given time, and that its balance sheet was highly geared, but stable.

“Eskom made profits of R21bn last year; the gearing (borrowing ratio) is high at 65%, but it is stable over the past four to five years; and with regard to the cash position, Eskom has substantial facilities that it has negotiated which it has not drawn down; and national Treasury has committed R23bn. So, I do not think Eskom is about to go bankrupt,” he told the committee.

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