[ad_1]
Editor's note: This live event is over. JOHANNESBURG – The president of Eskom, Jabu Mabuza, released Monday the 2017/18 financial results of the electricity company
Mabuza said that the state-owned enterprise was determined to continue to extirpate the corruption of his ranks.
He announced that irregular spending of 19 billion rand since 2012 had been discovered at the electricity company.
Eskom announced that the amount due by the municipalities had increased by 44% to 4.2 billion rand.
SOE announced a net after-tax loss of R2.3 billion, down from a profit of R0.9 billion in 2017.
CEO of Eskom, Phakamani Hadebe, said that & # 39; 39 It was not normal for the SOE to have ten CEOs and
Hadebe stated that Eskom's income levels remain insufficient and that the tariff increases granted by the national regulator do not should not improve the situation.
But he said that the challenges Eskom faced were not insurmountable. ] "One of our biggest t This application eliminates the corrupt behavior of some of our employees, which has threatened the financial viability of Eskom, another real challenge that we manage," he said in an accompanying statement the company's results for the year ended March 31. According to him, the progress made in Eskom's new construction program is satisfactory, as is the good operational performance of the current fiscal year, and the company continued to face significant challenges in the short run. and in the medium term. An increase of 5.23% for the 2018/19 fiscal year further aggravates the impact of the 2.2% tariff increase granted during the 2017/18 fiscal year and should not therefore not bring much improvements, "he said.
" Levels of arrears debt, especially that of municipalities, remains unacceptable, "Hadebe added, saying that Eskom's short-term goal would be to reduce costs to support sustainable financial development.
The public service was reviewing the strategy, which was due to be completed in September 2018, to ensure that it had an integrated strategy to meet the current challenges and ensure that future directions are clear and focused on stabilizing the organization. The turnaround plan included improving the profit margin before interest, taxes, depreciation and amortization (EBITDA) by at least 35% by increasing flexibility and stimulating business growth.
revenue and cost reduction, liquidity management, including the recovery of debt backlog, investment in mines more cost to benefit from cheaper coal, capital expenditure to 45 billion rand a year for at least three years and the reduction in balance sheet optimization.
Salary negotiations with unions representing Eskom workers are expected to resume on Friday.
The Union of Mineworkers (NUM) said that she was still open to negotiations despite her concerns over the latest Eskom announcement.
READ: Eskom needs to dig deeper, says Gordhan
"We are serious about negotiations, our members have indicated that a premium is a break in equality." In this case, we are surprised now that Eskom has announced that our members are not receiving bonuses and that they are extremely angry, "said Livhuwani Mammburu of NUM
* additional information African News Agency
eNCA
] [ad_2]
Source link
