ENERGY GAINT IN SOUTH AFRICA ESKOM POSTS U.S $170 MILLION LOSS
Eskom a South African electricity public utility suffers a net loss of R2.3bn in 2018, compared with a R0.9bn profit the previous year. This statement was revealed at its financial results presentation on Monday.
The poor results were allegations of corruption and mismanagement, challenges of governance and negative investor sentiment says Mr Phakamani Hadebe CEO. This was a result of shaking the cupboard so hard that so many skeletons came tumbling down
As it struggled with leadership and operational challenges the power utility net cash from operations declined from R45.8bn to R37.6bn.
Eskom Chair Jabu Mabuza says there is R19.6bn in irregular expenditure since 2012, with much of the irregular expenditure reports in 2018. “This was a result of us shaking the cupboard so hard that so many skeletons came tumbling down,” he said. The power utility admitted that its “transition towards financial and operational sustainability required resolute, tough and decisive leadership”.
Eskom continues to face significant financial and liquidity challenges in the short term. Due to the high debt burden, low sales growth and increased finance costs. Eskom debt has increased from R387bn to R600bn withing four years. The board is to take great steps to boost investor confidence.