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The electricity company reported having difficulties with customers and the failing municipalities, which had an impact on its operational costs.
He was declared stuck in a permanent loss position.
CEO Phakamani Hadebe said the utility has more than R400 billion in debt and 72 percent equity.
"The money we earn is not enough to pay our debt, which went from 40 billion rand in 2007 to 400 billion in 10 years," said Hadebe, adding that the 250 billion invested in the construction program 3,500 megawatts should be further improved.
Eskom's profit dropped to R671 million during the period from Rs 6.3 billion a year earlier, while financial costs increased from Rs 11.9 billion to Rs 15.2 billion.
However, the utility has seen improved liquidity with 52 billion rand for the 2018/19 secured plan.
He added that his payroll had weighed on his operating costs and that the municipal debt had risen 25%, from 13.6 billion to 17 billion rand in March this year.
"Eskom alone can not solve the financial and operational sustainability challenges it faces," said new chief financial officer Calib Cbadim.
"The shortfall in tariffs can not be solved unless it is through cost reduction and increased debt that aggravates the problem."
The municipalities claim that more than 9 billion rubles of debt result from an irregular billing by Eskom.
Eskom's finances come as parliamentarians have recommended that ex-presidents Zola Tsotsi, Ben Ngubane and Zethembe Khoza be prosecuted for unethical conduct alongside former managing directors Brian Molefe and Matshela Koko.
Eskom announced yesterday that 14 senior executives involved in corruption cases have been opened, 12 criminal cases have been opened, including five involving nine senior executives, a total of 1049 cases pending since April 2018, of which 858 have been closed, which resulted in the loss of 99 employees.
The electricity company said lifestyle audits for senior management were underway, with eight regulators conducting major investigations.
Energy badyst Ted Blom said Eskom would fight for its survival without finding a long-term coal supply, proper plant maintenance and secure financing.
BUSINESS REPORT
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