Eskom board called on to prove utility not trading recklessly

The Institute for Accountability in Southern Africa has written to Eskom chairperson Jabu Mabuza requesting a detailed written explanation as to why the current board believes the State-owned utility can be rescued from its current financial distress, cautioning that Eskom may currently be trading “recklessly” in terms of the legislation governing companies in South Africa. Campaigning as Accountability Now, the institute asserts that Eskom is both insolvent and illiquid, making it unlikely that it will be able to meet operational costs and long-term debt obligations.