By Terri-Ann Brouwers.
The Johannesburg Stock Exchange (JSE) has issued a public censure and a suspended fine of R3 million to state-owned utility Eskom for failing to comply with its Debt Listings Requirements.
In a Sens announcement released on 2 August, the JSE noted that, as a state-owned entity and issuer of debt securities, Eskom has a continued obligation to adhere to these requirements.
In 2020, the JSE implemented specific rules for state-owned entities, including policies on the disclosure and treatment of domestic prominent influential persons (DPIPs) and related parties. Eskom failed to comply with these rules, leading to a series of extensions granted by the JSE. Despite these extensions, Eskom did not meet the deadlines to publish the required policies and registers on its website.
The report stated that Eskom was not compliant with the following rules:
“2.1. A policy on the disclosure and treatment of domestic prominent, influential persons who are board members and prescribed officers in respect of any dealings by the issuer with domestic prominent influential persons, together with a register of such; and
2.2. A policy on the disclosure and treatment of loans and procurement with any related party, domestic prominent, influential persons and prescribed officers, together with a register of such, (collectively ‘the policies and registers’).”
The JSE found Eskom in breach of several stipulations of the Debt Listings Requirements for not publishing these documents on time. The delayed disclosures raise concerns about conflicts of interest and transparency in transactions involving DPIPs and related parties, potentially undermining investor confidence.
The fine is suspended for three years, provided Eskom does not breach similar provisions during this period.
Eskom has acknowledged its non-compliance but emphasised that no loans or procurement transactions with directors or prescribed officers occurred during the review period, as these are prohibited by its internal policies. Eskom also noted that the required policies and registers have now been published on its website, and it is committed to maintaining compliance with the JSE’s requirements going forward.
Eskom expressed disappointment at the public censure and suspended fine but reiterated its commitment to good corporate governance and transparency.