Eskom addressing concerns raised by lenders

Eskom's Khulu Phasiwe says that they have been working hard on their turn-around strategy.

FILE: Eskom's headquarters at Megawatt Park in Johannesburg. Picture: Reinart Toerien/EWN

JOHANNESBURG - While efforts to clean up the Eskom forge ahead in Parliament, the cash-strapped company signed a R20 billion loan with a group of banks.

The power utility says it has addressed a number of concerns raised by lenders.

Eskom's Khulu Phasiwe says that they have been working hard on their turn-around strategy.

"Primarily around the perceptions of Eskom not doing anything about people implicated in corruption and importantly, Eskom is in the process of reviewing some of the questionable contracts signed over the last two or three years."

With the parastatal working hard to turn itself around it's been dealt a blow, this time by S&P Global. The ratings agency has downgraded Eskom's credit rating, citing liquidity concerns and insufficient government support that could trigger a default.