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
Free service to tackle human resource queries during the COVID-19 lockdown

Free service to tackle human resource queries during the COVID-19 lockdown

Strata-G Labour Solutions is offering a free hotline for employers to get clarity on HR-related matters during the lockdown.

Duduza Clinic nurse tests positive for COVID-19, other nurses awaiting results

Duduza Clinic nurse tests positive for COVID-19, other nurses awaiting results

Mayor of Ekurhuleni spokesperson Phakamile Mbengashe says they have deployed two mobile clinics to the area.

World Autism Awareness Day: 'Disclose what COVID-19 is and create a routine'

World Autism Awareness Day: 'Disclose what COVID-19 is and create a routine'

Action in Autism chairperson Liza Aziz says the lockdown has been very difficult for people with the disorder.

Holding your centre when things fall apart in the time of COVID-19

Holding your centre when things fall apart in the time of COVID-19

The founders of Love Legacy Dignity guide listeners on how to process grief in light of the coronavirus mortality.

Zwelinzima Vavi tests positive for coronavirus, will be in self-isolation

Zwelinzima Vavi tests positive for coronavirus, will be in self-isolation

The South African Federation of Trade Unions general secretary says he had a light cough on Saturday, was sweating and fatigued.

Consumers advised to use their credit life insurance for relief

Consumers advised to use their credit life insurance for relief

Supervisor for credit provider compliance at the NCR Theodore Smith explains how the cover works.

SAA to provide repatriation charter flights to various countries

SAA to provide repatriation charter flights to various countries

SAA spokesperson Tlali Tlali says if people don't have a return ticket they must contact their respective embassies.

Mangaung municipality wants remains of COVID-19 victims declared biohazards

Mangaung municipality wants remains of COVID-19 victims declared biohazards

The metro's communication general manager, Qondile Khedama, says families will be advised on how to handle the bodies.

Lockdown and our mental health: One week in – what have we learned?

Lockdown and our mental health: One week in – what have we learned?

Cindy Poluta's expert panel recount their experiences and share advice on how to navigate mental wellbeing at this time..

Tips on how to assist domestic abuse victims during COVID-19 pandemic

Tips on how to assist domestic abuse victims during COVID-19 pandemic

BBC gender and identity correspondent Megha Mohan highlights different measures aimed at helping those in need during this time.