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Good evening, Fifi … I think it is a bit of a technical matter, but it just highlights how the financial management of Eskom has [deteriorated] over a period. We already know they’re struggling to even produce electricity. They’re losing a lot of money, but even the basic financial controls are not really there.
I think it is more of a technical issue. The main issue with Eskom is really about generation and financial performance. So, when you are sitting with very low energy availability factors, when you are scheduled to lose R32 billion a year and possibly more with the open-cycle gas turbines, those are core issues.
No. I think the main thing from the credit rating agencies is really about the recent bailout and the recent budget – Eskom getting a R250 billion debt transfer. Two-thirds of Eskom’s debt is going over to the government and that has a massive impact on the balance sheet. That’s why credit rating agencies at the moment are looking at upgrading Eskom. At the moment it’s rated triple-C, so it’s really down in the dumps. It’s only just slightly above the level of a default rating.