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Eskom uncovers R20 billion in irregular expenditure

And announces a loss.

South Africa‘s struggling state-run power firm Eskom reported a R2.3 billion ($171 million) loss on Monday, underlining the enormity of the task facing President Cyril Ramaphosa, who has pledged to turn the company around.

The utility also reported that it had uncovered about R20 billion of irregular expenditure since 2012, as the firm combs its financials for evidence of wrongdoing. This is almost equivalent to the R22.9 billion that Sars will raise following the 1% increase in VAT, announced in March.

Eskom, Africa‘s largest public utility, was embroiled in corruption scandals under former president Jacob Zuma and narrowly avoided a liquidity crunch early this year after banks halted lending. Zuma has denied any wrongdoing.

It supplies more than 90% of South Africa‘s electricity, and ratings agencies regularly cite its R220 billion of government-guaranteed debt as a threat to the country’s sovereign credit ratings.

Read: Eskom considering asset sales, staff cuts after big loss

Eskom pegged the loss for 2017/18 financial year ending March on increases in financing costs and depreciation compared with a profit of R888 million in the previous reporting period.

“Eskom is undoubtedly facing one of the most difficult times in its history,” Eskom chairman Jabu Mabuza said.

The utility’s executives told a news conference it had R22.7 billion liquidity by the end of the financial year.

 

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Eskom must be sold. Perhaps the Chinese know how to run these companies?

I fully agree with you. SAA, Eskom, Construction industry should be open up to the Chinese.

You must be crazy – the Chinese will look after only one interest.
That of China.
Eskom needs to be managed as a business, not as the personal bank of ANC cadres who have a secondary goal of being a “manufacturer” of employment.

“The utility also reported that it had uncovered about R20 billion of irregular expenditure since 2012, as the firm combs its financials for evidence of wrongdoing.”

Show me one JSE listed company that can get though losing R20 billion in six years without management being aware of it. Which means that management must have been complicit.

@beachcomber…….STEINHOF INTERNATIONAL.
Remember those guys…. You either have a short memory or suffer acute amnesia.

and don’t forget SUITCASEMAN!

as beachcomber said –
“Which means that management must have been complicit”…government with its cadre deployment at the trough, and this is how the ANC is financing itself through crime.

Ha, ha …

This is the irregular expenditure that has been uncovered. Let us not ask what remains to be uncovered or will never be uncovered. What will come to pass, however, is that Eskom will need money to remain an viable entity. Will they go after the crooks? will the prosecute the crooks? more chance of me falling pregnant by wind pollination and I’m post menopausal. What they will do, however, is plead poverty to the regulator and demand higher prices and/or get a bailout from the mates in the ANC. Either way the consumer is screwed over, twice.

This is why there is no tax morality left in South Africa. The bailout is effectively stolen money. This why you are paying tax: for cadre enrichment/ theft. SARS is effectively the extortion arm of a criminal enterprise.

Make it a public company where shareholders dividends are paid in electricity credits! Anything is better than this – taxpayers and householders ( who actually pay for their electricity) bearing the brunt of incompetence theft and fraud. again.
And where are the Guptas?

Sadly, this type of thing will never end as long as the cadres are in charge.

Clearly, most of our citizens are okay with that, judging by the votes the ANC receives every 5 years.

Trumpet serenade!!!!!! Another shining example of business efficiency brought to you by the ANC. Thank you so much evil ANC.

Eskom can’t trace R633 every second of every day… no one can account for it and no gets arrested or punished, amazing corrupt country we live in.

Yup, and if the NUCLEAR deal had been pushed through the R20 billion would have ended up being R200 billion. Small mercies, at least that debacle was halted. Agree with Richardthe Great, what is yet to be unearthed – makes one shudder…

“The utility also reported that it had uncovered about R20 billion of irregular expenditure since 2012”

Basically New Dawn administration versus Past administration.

We are caught and drawn into an ANC faction war.

“Irregular Expenditure” – SO WHAT? Just add another layer of taxes on unit trusts guys!
Those arrogant savers deserve it anyway, all were no doubt previously advantaged at some point and in some way.

There is only one question I would like Eskom to answer to all citizens of the country – why are these criminals not already in jail!

R 20 BILLION !!!!!!! That is industrial scale theft, yet we are taxed to the eyeballs. In this country there is a group that creates, a group that does absolutely nothing and a group that steals. The group that does absolutely nothing votes for the group that steals, who steal from the group that creates. That is why SA is not a failing state but a failed state …

Any company that discriminates against the most competent employees in favour of the least competent employees, and promotes the lazy and unreliable employees and fires the diligent and reliable employees, will certainly go bankrupt. When a government does the same, the voters will certainly inherit a failed state.

The ANC policies of BEE, EE and cadre deployment basically guarantees the destruction of electricity supply, water supply, sewerage works, road and rail infrastructure, construction projects, medical services, education and food supply. Socialism promotes incompetence and punishes excellence. People who support such a system deserve their fate of famine and disease.

Now why don’t Afriforum and Gerrie Nel become crime busters by initiating class actions against these SoE’s – if they need funds then they can crowd fund the legal actions – I’m sure many taxpayers would divert their tax payments to these people rather than paying SARS who are nothing more than collectors of ill repute

What’s R20bn amongst the ‘let’s loot South Africa society’?

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