Post by cjm on Aug 4, 2019 6:05:18 GMT
Eskom CEO confirms problems
Eskom’s R20.7-billion loss over the last financial year is the largest ever by a state-owned company in South Africa.
Eskom’s acting CEO Jabu Mabuza told Radio 702 that Eskom has overborrowed to the tune of R440 billion and that its revenue is not enough to service its current debt.
He added that Eskom is selling electricity at 90 cents which costs the company 112 cents to produce.
An additional problem is that many of the municipalities which it sells electricity to do not pay their bills. This, Mabuza said, amounts to around R40 billion.
While Eskom is heavily overstaffed, the company is prohibited from cutting jobs which makes it nearly impossible to become more efficient.
“The president said we can’t retrench, which means we are looking at other ways. The pain has to be taken by suppliers, customers, shareholders, employees, and management,” he said.
Eskom’s R20.7-billion loss over the last financial year is the largest ever by a state-owned company in South Africa.
Eskom’s acting CEO Jabu Mabuza told Radio 702 that Eskom has overborrowed to the tune of R440 billion and that its revenue is not enough to service its current debt.
He added that Eskom is selling electricity at 90 cents which costs the company 112 cents to produce.
An additional problem is that many of the municipalities which it sells electricity to do not pay their bills. This, Mabuza said, amounts to around R40 billion.
While Eskom is heavily overstaffed, the company is prohibited from cutting jobs which makes it nearly impossible to become more efficient.
“The president said we can’t retrench, which means we are looking at other ways. The pain has to be taken by suppliers, customers, shareholders, employees, and management,” he said.