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

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
[BREAKING NEWS] Old Mutual to appeal ruling forcing it to reinstate Peter Moyo

[BREAKING NEWS] Old Mutual to appeal ruling forcing it to reinstate Peter Moyo

The Money Show’s Bruce Whitfield interviews Tabby Tsengiwe, Chief Communications Officer at Old Mutual Group.

Worst unemployment rate in 16 years. 455 000 more people jobless than a year ago

Worst unemployment rate in 16 years. 455 000 more people jobless than a year ago

About 6.7m people in SA are unemployed, up from 4.3m a decade ago. Bruce Whitfield interviews labour economist Andrew Levy.

Why I-Capital is buying Standard Bank, PayPal and Long4Life

Why I-Capital is buying Standard Bank, PayPal and Long4Life

Lance Williams (Managing Director at I-Capital) shares his stock picks of the week.

'Very strong risk of load shedding returning in August'

'Very strong risk of load shedding returning in August'

The Money Show’s Bruce Whitfield interviews Peter Attard Montalto, Head of Capital Markets Research at Intellidex.

Land panel report puts a bullet through the New Dawn's brain – IRR

Land panel report puts a bullet through the New Dawn's brain – IRR

It's "economic suicide", "a 130-page formula to destroy the economy", says the IRR. Bruce Whitfield interviews Terence Corrigan.

8 tips and tricks to cut your cost of living

8 tips and tricks to cut your cost of living

Personal finance expert Warren Ingram discusses ways to reduce your monthly expenses.

Popular articles
Africa needs activists, not leaders: Meet SA's AU youth council member

Africa needs activists, not leaders: Meet SA's AU youth council member

Listen to insights from Shakira Choonara - award-winning, internationally recognised youth and healthcare activist.

EFF wants 'apartheid denialist' de Klerk prosecuted and Nobel Prize withdrawn

EFF wants 'apartheid denialist' de Klerk prosecuted and Nobel Prize withdrawn

The EFF responds to FW de Klerk Foundation statement after demanding the former president's removal from Parliament during Sona.

Eskom shifts load shedding to stage 2

Eskom shifts load shedding to stage 2

Stage 2 load shedding is in force from 9 am on Sunday.

Me-time, partner time and parenting - finding the right balance

Me-time, partner time and parenting - finding the right balance

Parenting expert Nikki Bush has advice on balancing everyone's needs amid the demands of busy family lives.

[WATCH] Zozi returning to US after colourful Cape Town welcome

[WATCH] Zozi returning to US after colourful Cape Town welcome

Zozibini Tunzi dazzled Capetonians during the final leg of her homecoming tour after bagging the Miss Universe crown in December.

Weekend load shedding upgraded to stage 3

Weekend load shedding upgraded to stage 3

After announcing stage 2 power cuts on Friday evening, Eskom now says stage 3 will be implemented from Saturday morning.

Eskom to implement Stage 2 load shedding

Eskom to implement Stage 2 load shedding

The power utility says this is due to the loss of an additional four units.

[LISTEN] Is a new smart city in Gauteng feasible?

[LISTEN] Is a new smart city in Gauteng feasible?

Ntiyiso Consulting Group CEO and industrialist Alex Mabunda shares his views on President Cyril Ramaphosa's big plan.

DUT security threaten EWN journalist with violence and 'throwing him off a hill'

DUT security threaten EWN journalist with violence and 'throwing him off a hill'

Eyewitness News reporter Nkosikhona Duma explains why he was threatened by the private security company.

'Saxbae' Bongani Radebe sets the mood for Valentine's Day Evening of Love

'Saxbae' Bongani Radebe sets the mood for Valentine's Day Evening of Love

Bongani Radebe and Bekezela serenade #702Uplugged this Valentine's Day.