The JSE has reprimanded state-owned power utility Eskom for its failure to comply with the provisions of the bourse’s debt listings requirements (DLRs) after its promulgation in 2020.
To this end, the exchange censured Eskom with a R3m fine suspended for three years, for not publishing policies relating to board members and prescribed officers’ dealings, loans and procurement.
“In September 2021, Eskom applied to the JSE for an extension to finalise the relevant policies and registers and the JSE granted Eskom an extension to February 28 2022. Thereafter, and in terms of the extended timeline granted by the JSE, Eskom notified the market in a Sens announcement published on November 29 2021 that the policies and registers would be available on its website by February 28 2022,” the JSE said in a statement on Friday.
“However, Eskom failed to abide by the terms of their own extension request and after confirming such to shareholders in the Sens announcement. Eskom submitted a further extension request to the JSE on December 22 2022 for an extension until July 31 2023 to publish the outstanding policies and registers. However, by July 31 2023, Eskom had not fulfilled its commitment to publish the relevant policies and registers.”
In response, Eskom said it acknowledged that it had not been fully compliant with the requirement to publish the policies and registers as required. However, the utility laid out several reasons for its “disappointment” with the public censure by the JSE.
It said that because its memorandum of incorporation does not make provision for the company to extend loans to directors or executives, there would not have been a need to record non-existent transactions.
It also said its conflict of interest has been publicly available since 2019.
“In terms of Eskom’s Politically Exposed Persons Policy dated April 8 2024, Eskom initiated a process of informing the top 100 suppliers of the new requirement to identify and maintain a register of suppliers who fall within the categories identified in paragraph 7.15 of the DLRs,” the utility said.
“Eskom will publish the requisite register on or before October 31 and suspended fine from the JSE but is wholly committed to ensuring the entity complies with the DLRs and upholds the values and principles of good corporate governance.”
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