Brown confident Eskom is financially stable

Minister Lynne Brown was unsure of what credit rating agencies will make of Molefe's return, but she told reporters the power utility cannot be faulted on its finances.

Public Enterprises Minister Lynne Brown. Picture: Thomas Holder/EWN.

CAPE TOWN - Eskom is up for a credit rating review soon on the back of Brian Molefe's reinstatement as CEO, but Public Enterprises Minister Lynne Brown believes the parastatal is financially sound.

At a briefing in Parliament on Friday, Brown was unsure of what credit rating agencies will make of Molefe's return, but she told reporters the power utility cannot be faulted on its finances.

Brown said she supported the Eskom board's decision for Molefe to go back to his post after she told them they could not give him a pension pay-out of R30 million.

Brown told reporters Eskom's financial position is better than it was three years ago when the country faced load-shedding.

However, she says there's still much uncertainty about what credit rating agencies will do.

“I do know on the strength of the financial stability that credit rating agencies will not be able to fault them.”

Brown says Eskom has also assured her it will reduce its reliance on state guarantees by R100 billion within the next five years.