NEWS
01/06/2018 07:01 SAST | Updated 01/06/2018 07:02 SAST

Is Eskom Finally Turning A Corner?

Eskom has been able to secure funding after running out of cash last year and its new CEO has been widely hailed.

Felix Dlangamandla/Foto24/Gallo mages/Getty Images
Eskom CEO Phakamani Hadebe.

Has Eskom finally turned a corner? The parastatal announced this week that it has managed to secure funding from lenders just two months into the financial year, after running out of money just last year.

According to Business Day, Eskom says it has secured more than R13-billion in funding, narrowing its funding gap to R58-billion for the financial year ending March 2019.

CEO Phakamani Hadebe reportedly said lenders have begun opening up to the embattled power utility, which ran out of cash late last year, when funders refused its pleas for money.

In February, Eskom reportedly needed a 30-day emergency loan from the Public Investment Corporation so that it could pay salaries.

Also this week, Business Leadership South Africa (BLSA) reportedly lifted its suspension of Eskom, after previously booting the power utility from the organisation because of allegations of corruption.

According to Business Report, BLSA chief executive Bonang Mohale said the decision to lift Eskom's suspension was in recognition of Eskom's new board's progress.

Last week, Cabinet approved the appointment of well-respected interim CEO Phakami Hadebe as permanent CEO, Fin24 reported.

The move is part of sweeping changes made by public enterprise minister Pravin Gordhan to state-owned enterprises and their boards.

Addressing the appointment of Hadebe, Gordhan reportedly said,

"Hadebe has experience at the Land Bank and Treasury, he had a stint at banking institution ABSA, he is competent to steer Eskom and stabilise the institution and position it for its role in the economy."

Hadebe's appointment was widely praised.