Eskom Records Largest-Ever Financial Year Loss
Debt-ridden power utility Eskom has announced record losses for the year ending March 2019. The embattled utility suffered a loss of ZAR 20.7 Bn, the company announced on Tuesday.
Jabu Mabuza who was appointed as acting CEO recently said, “Today, Eskom releases results that, while expected, are unfavorable. The organisation disappointingly incurred a net loss after tax of ZAR 20.7 Bn, a significant increase from the ZAR 2.3 bn loss experienced in the previous year coupled with an audit qualification on PFMA compliance.”
Despite numerous bailouts by the government, the company has continuously recorded losses which have had ripple effects in the SA economy.
The utility’s crippled financial and operational situation posses a huge threat to South Africa’s economic prospects especially at a time when the country is struggling to recover after a recession.
The state-owned entity’s crisis was as a result of political meddling, state capture and corruption. Electricity prices have increased by close to 30 per cent over the last two years majorly because of the huge financial losses.
The losses also plunged the country into rotational load shedding in 2018 that led to an economic slowdown.
According to Intellidex analyst Peter Attard Montalto, load shedding could return this August. He spoke to Radio 702 revealing that Eskom has not been able to solve its major setbacks.
Featured Image Courtesy: Northglen News
