The JSE has publicly censured and levied a R3m fine on Eskom for its late reporting on issues like loans to related parties, such as board members.

A Fin24 report notes that the sanction is for not timeously publishing the policies and registers, and in no way suggests any breach of the policies themselves.

Eskom, meanwhile, said on Friday it was disappointed by the ruling, but was committed to good governance, adding that it had no major issues to flag.

Eskom is not listed on the JSE, but it does issue bonds on the exchange's Debt Board.

The JSE said in a statement that Eskom had failed to comply with debt listing requirements promulgated in 2020. These require, for example, an issuer to publish its policies for the disclosure and treatment of prominent domestic influential persons who are board members, or any loans to parties that would raise eyebrows.

In September 2021, Eskom applied to the JSE for an extension to finalise the relevant policies and registers and was granted an extension to 28 February 2022.

Eskom notified the market in an announcement published on 29 November 2021 that the policies and registers would be available on its website by 28 February 2022 but submitted a further extension request for the end of July 2023, a deadline it did not meet.

Failure to make such disclosures means that investors could be subject to potential conflicts of interest, and transparent reporting allows bondholders to assess the fairness of their transactions, the JSE said, depriving them of ‘crucial insights into potential risks and the issuer's true financial health.’

It has levied a R3m fine, suspended for three years on condition that Eskom isn't found to have breached similar rules.

Eskom said it has already taken significant steps to rectify the non-compliance.

Full Fin24 report