BANKS NOW WILLING TO LEND TO ESKOM

JOHANNESBURG– Not long ago, Eskom, South Africa’s troubled power utility, was facing collapse amidst allegations of widespread corruption and mismanagement.

The State-owned company says local financial institutions are now queuing up to lend it money following the drastic changes in management recently.

Eskom now has a new board of directors and a new acting chief executive officer and they have wasted no time cleaning up the place and getting rid of senior managers accused of corruption. The efforts are already paying off.

Eskom needs 20 billion Rand (about 1.65 billion US dollars) to stay afloat until the end of its financial year next month and it has already got 5.0 billion Rand from the Public Investment Corporation (PIC), Africa’s largest asset manager, this week and it’s about to secure the remaining 15 billion Rand from local banks.

Thereafter, it will have to secure 70 billion Rand for the next fiscal year beginning in April.

Meanwhile, the new disciplinary hearing against Eskom’s controversial Head of Generation, Matshela Koko, is set to begin next week. He remains suspended until the matter is finalized.

Source: NAM NEWS NETWORK