The Public Finance Management Act requires the directors to ensure that Eskom Holdings Limited (Eskom) and the group keep full and proper records of their financial affairs. The financial statements should fairly present the state of affairs of Eskom and the group, its financial results, its performance against predetermined objectives and its financial position at the end of the year in terms of International Financial Reporting Standards.

The financial statements are the responsibility of the directors. The external auditors are responsible for independently auditing and reporting on the financial statements.

The financial statements of Eskom and the group have been prepared in terms of International Financial Reporting Standards and the Companies Act. These financial statements are based on appropriate accounting policies, supported by reasonable and prudent judgements and estimates and are prepared on the going-concern basis.

The directors have reviewed the group’s cash flow forecast for the year ending 31 March 2009 and the five year forecast to 31 March 2013. In assessing this forecast cognisance was taken of the risks and challenges facing the group. In light of this review and the current financial position, the board is satisfied that the group has access to adequate resources to continue in operational existence for the foreseeable future based, inter alia, on the Nersa tariff increase and indicative shareholder support for additional funding.

To enable the directors to meet the above mentioned responsibilities, the Eskom board of directors sets standards and implements systems of internal control. The controls are designed to provide cost-effective assurance that assets are safeguarded, and that liabilities and working capital are efficiently managed. Policies, procedures, structures and approval frameworks provide direction, accountability and division of responsibilities, and contain self-monitoring mechanisms. The controls throughout Eskom focus on those critical risk areas identified by operational risk management and confirmed by executive management. Both management and the corporate audit department closely monitor the controls, and actions are taken to correct deficiencies as they are identified.

Based on the information and explanations given by management and the corporate audit department and discussions held with the independent external auditors on the results of their audits, the directors are of the opinion that the internal accounting controls are adequate to ensure that the financial records may be relied upon for preparing the financial statements, and that accountability for assets and liabilities is maintained.

Nothing significant has come to the attention of the directors to indicate that any material breakdown has occurred in the functioning of these controls, procedures and systems during the year under review.

In the opinion of the directors, based on the information available to date, the financial statements fairly present the financial position of Eskom and the group at 31 March 2008 and the results of its operations and cash flow information for the year.

The financial statements of Eskom and the group for the year ended 31 March 2008 have been approved by the board of directors and signed on its behalf on 25 June 2008 by

Valli Moosa Chairman		Jacob Maroga Chief executive