SAfrica Eskom's power struggle may unnerve investors

* Could affect state-owned firms' fundraising

* Government needs to show more leadership

By Agnieszka Flak

JOHANNESBURG, Nov 10 (Reuters) - Political meddling in resolving a power struggle at utility Eskom has raised questions about South Africa's ability to run state-owned firms and could backfire with investors hesitant to commit new funds.

Eskom's chairman Bobby Godsell resigned on Monday after he said the government failed to support the board's bid to oust the company's chief executive Jacob Maroga after the two clashed over issues of how to run Eskom, the state-owned firm which is struggling to keep South Africa's lights on. [ID:nL9516527]

But rather than resolving the dispute within the board, Eskom and the government have left it to unions, the opposition and interest groups to dominate the debate in the public sphere.

Alistair Sparks, a political analyst at Standard Bank Securities, said the lack of government backing for the board will have serious implications for when Eskom needs to raise funds for its 385 billion rand ($51.74 billion) expansion programme.

"Serious institutions will be much more reluctant to lend money to Eskom and if they do, it will be at a much higher interest rate because the risk seems to be higher," he said.