Eskom’s new chairman‚ Jabu Mabuza‚ has cancelled his trip to the World Economic Forum at Davos this week‚ which he was due to attend along with cabinet ministers and other business leaders‚ so that he and the new board can get down to business.
He met the entire Eskom executive team on Monday. Just hours later on Monday night‚ the utility said: “Eskom has today received through Mr Anoj Singh’s attorneys a formal letter of resignation by Mr Singh from his position as chief financial officer‚ in line with the terms of his employment contract.” The Eskom board‚ through its chairman‚ “has accepted the resignation”‚ which “is with immediate effect”.
There are several pressing items that the board will have to deal with:
– the finalisation of the interim financial statements‚
– the lack of liquidity‚
– failures of corporate governance and
– corruption allegations.
It is a race against time for Eskom as it endeavours to avoid the suspension of its bonds by the JSE and a pending letter of default by the World Bank.
It also has to raise R20 billion over the next two months to meet the going-concern criteria of its auditors‚ a requirement for it to publish its interim financial statements‚ which are three months overdue. The financial statements are needed by the end of January to avoid the suspension of its bonds by the JSE‚ which would be disastrous as it would make raising debt on the international capital market impossible.
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Source: TMG Digital.