'Government won’t let Eskom go to the gutter'
Eskom said while it remained financially constrained, government wouldn't allow it to become bankrupt.
JOHANNESBURG - Eskom on Tuesday said while it remained financially constrained, government wouldn't allow the ailing utility to become bankrupt.
Concerns have been raised for several months about whether the power utility could continue providing electricity while it was cash-strapped and, more recently, its credit rating was lowered to junk status.
Eskom however said with government's assistance and a cash injection expected soon, it would be able to continue powering the country.
Eskom raised issues about its financial status earlier this year with several plans discussed on how to keep the utility going.
Energy expert Ted Blom said the situation was dire.
"It's reached a critical stage and if something isn't done within days, not weeks or months, we'll see Eskom falling over."
But Eskom's Khulu Phasiwe said they would manage.
"The government won't let Eskom go to the gutter; they are assisting us."
The utility is waiting for a cash injection of several billion rands by June.