CAPE TOWN - Eskom is now attracting more investors after recent major changes on the board and clean up of the controversial management by the deputy president Cyril Ramaphosa.
The power utility says local financial institutions are now queuing up to lend it money following the recent drastic changes in its management, this is according to the public broadcaster SABC.
Eskom needs a total funding of R20 billion to stay afloat of its operations.
The 'fundraising' power utility revealed that it’s about to secure R15 billion from local banks. Eskom's spokesperson, Khulu Phasiwe explained that the market has had a perception that the ousted board was doing nothing about corruption which is said to be tying Eskom.
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On Monday, the Public Investment Corporation (PIC) on behalf of the Government Employees Pension Fund (GEPF), said it has agreed to advance a R5 billion bridging facility to Eskom for one month. The GEPF and the PIC said that they will continue to closely monitor developments at Eskom.
PIC's decision received unwelcoming reactions from trade unions and opposition parties, which claimed that Eskom doesn't deserve to be rescued using taxpayers money.
The PIC and the GEPF are encouraged by the recent changes in the governance of Eskom.
Dan Matjila, CEO for the PIC said, "The GEPF and the PIC are encouraged that the new Eskom Board and the new management team have moved with the necessary speed to restore good corporate governance at Eskom".
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During the release of Eskom's delayed interim results in January, the power utility's interim CEO, Phakamani Hadebe admitted they are facing significant financial challenges emanating from lack of integrity, lack of corporate governance and proper leadership.
Eskom also said its performance capacity is not optimal but "satisfying.
The state-run company which has been embroiled in a governance crisis and allegations of undue influence in awarding tenders, said in a statement it would address governance concerns and stabilise the firm through its new board.