JOHANNESBURG: South African power producer Eskom is not facing liquidity challenges, the utility said on Sunday, after media reports alleging it would be unable to pay salaries by November.

Eskom, which produces nearly all of the electricity in Africa’s most industrialised economy and exports energy to neighbouring states such as Namibia, is backed by more than $10 billion in government guarantees. “Eskom refutes the notion that it is facing a cash crisis, and that it has only enough cash to last for the next three months,” the state-owned utility said in a statement.

The state-owned power producer last week postponed the publication of its annual results without giving reasons, but said later that external auditors had raised “reportable irregularities”.—Reuters