Eskom records largest loss ever (R20.7 billion!) for a state-owned company

pixabay.com (2018)

Eskom made a loss of R20.7 billion in the 2018/2019 financial year.

It’s the largest loss ever for a state-owned company in South Africa, far exceeding the R14.6 billion PetroSA lost back in 2015.

Acting Eskom board chair Jabu Mabuza briefed the media on the ailing power producer’s annual financial results on Tuesday afternoon in Johannesburg.

He gave reasons for taking on the dual roles of Chair and Chief Executive.

Mabuza said he realised that his dual role was a conflict of interest and that a new CEO must be found in the next three months.

I have availed myself to be a placeholder for the next three months as Phakamani steps down. I do this being mindful of the need for leadership stability in this organisation.

Jabu Mabuza, Acting Chairperson - Eskom

Eskom isn’t generating enough cash to cover its interest and debt repayments, despite tariff increases of more than 500% since 2007.

It owes about R500 billion, thereby threatening the collapse of the entire economy.

The Money Show’s Bruce Whitfield interviewed Mabuza.

Listen to the interview in the audio below (and scroll down for quotes from it).

It’s a hospital pass that I’m ready to pass on… If it was my company, I’d have a CEO tomorrow… The adverts are out… I’m not available [beyond three months] …

Jabu Mabuza, Acting Chairperson - Eskom

We have overborrowed… Revenue is not sufficient to service our current debt… We’re selling electricity at 90 cents that we are producing at 112 cents…

Jabu Mabuza, Acting Chairperson - Eskom

We have pencilled in R33 billion of cost savings…

Jabu Mabuza, Acting Chairperson - Eskom

The President said we can’t retrench… The pain has to be taken by… suppliers, customers, shareholders, employees, management…

Jabu Mabuza, Acting Chairperson - Eskom

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