Posts tagged with 'debt burden'

 

Eskom with a debt burden of R450 billion may be the downfall of ANC regime

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Political analysts say the actions of high-ranking officials in Eskom could lead to the demise of the ANC government.

The pressure is mounting on the ruling ANC regime from the inner circles as well as opposing structures as well as from extreme groups to act against those responsible for the mess in which the power supplier is currently facing its debt burden of R450 billion.

The claims are varied, but many expect the ANC to take action against Public Enterprise Minister Pravin Gordhan, who is closely concerned with Eskom’s problems.

The Red Brigade is demanding Gordhan’s sacking, while Deputy President David Mabuza himself helped to throw Gordhan under the bus.

There is also a feud against Ramaphosa, from people who believe he should have forced Eskom to stay with his company in order not to employ any loadshedding before January 13.

With all the turmoil, this could eventually lead to the disintegration of the ANC, which could have far-reaching consequ
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Zuma in the last trench – application for appeal rejected

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After the Pretoria High Court rejected former ANC President Jacob Zuma’s application for appeal with costs, he is now on his way to the Appeal Court.

It is Zuma’s last trench he uses to stay out of jail, and although it is a method of escaping his final trial, the debt burden on court costs is only increasing.

Experts point out that his chances of winning the Appeal Court are extremely slim, and that it will have far-reaching consequences for the man if he fails again.

Political analysts, however, believe that Zuma is playing his cards well, and that with the possibility of a failure in the Appeal Case, he has already incinerated himself by spending a week in hospital, to be “sick again” after the court’s ruling ” to become.

After all, opinion makers say this is the successful method that the long-lived Schabir Shaik used several years ago to open the prison doors for his release so he can play golf again.

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Madupi still not complete after 12 years – It is a wonder that they haven’t blamed old Jan yet!

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Eskom says the Medupi power station’s Phase 2 stage is in operation, making it part of the power supply’s overall electricity output.

The announcement comes 12 years after the first donation was made to set up Medupi, but during that time, South Africa paid much more for the erection than initially budgeted.

In addition to building the power plant more than 200% more expensive, the cost of more than R150bn has shown that South Africa is not only irresponsible in managing its spending, but is also equally irresponsible in appointing those who had to do the erection.

Economists say the construction of Medupi and Kusile power plants eventually totaled R234 billion, but informed sources indicate that much more money is needed to bring the two power plants to full capacity.

The cost of the two exchanges further increased South Africa’s enormous debt burden, and analysts reckon it will take at least 40 years before Eskom’s two exchanges will be paid, but by that
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SAA: More unions want to strike after Gordhan’s attempt at wage and severance dispute fails

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In support of Numsa’s strike, and in opposition to the view of ANC minister Pravin Gordhan, more unions have indicated that they will join the strike.

The circumstances in which SAA currently finds itself have left the state-controlled entity in unsustainable status, and the entry of Pravin Gordhan has increased the bitterness and power building on both sides.

Gordhan’s attempt to settle the dispute over wages and retrenchments failed, thereby extending the strike, which would mean millions of Rand per day to losses for the already bankrupt entity.

There are apparently insufficient funds to pay the staff at the end of November, and the huge debt burden will not come to an end without a radical intervention.

True to their actions, the unions once again help push the entity further into the abyss with their unrealistic wage demands.

Numsa also expects SAA not to apply any retrenchments, which means that the national aircarrier will no longer be able to ope
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Ramaphosa plans to pay Eskom’s R440bn debt burden off but no one knows how

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The ANC president’s plan to get Eskom out of the mess has yet to come to light and is apparently a state secret or no such plan at all.

That’s the opinion of an expert in Pretoria who set his sights on the president’s promises that never come true, he said.

The Ramaphosa plan to cut Eskom’s debt burden, which is now past the R440bn mark, and to manage the entity in such a way that it makes good profits without introducing excessive rate hikes, requires much more than a Ramaphosa plan, it is said.

The power provider’s loss for the past financial year amounted to R21 billion, which is a clear indication that the ignorance of applying good management practices is completely lacking.

The Ramaphosa plan will have to be slightly more than it has so far announced as plans, and to turn a R21bn loss for the current financial year to a favorable balance, more expertise is needed than Eskom currently has.

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Ramaphosa on begging mission in London in an attempt to save penniless SA from economic ruin

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ANC President Cyril Ramaphosa is on a begging mission to London in an effort to prevent the bankrupt South Africa’s economic downfall.

The visit is a result of the recent appointment only the Presidential Economic Advisory Council, which is apparently composed of experts and recommended that the ANC go begging abroad.

With municipalities that are technically bankrupt due to their debt burden to Eskom, and the power provider’s operating loss of R21 billion, as well as a debt burden of R430 billion, investors are unlikely to risk investing in South Africa.

With Moody’s as the only rating agency that has not yet downgraded to junk status, Ramaphosa’s mission is once again doomed to failure.

His promise of two years ago for investors to invest billions in South Africa was a gimmick that led to nothing, and his new mission will be full of promises, but nothing will happen, he said.

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Businesses go bankrupt in SA – Not only Edcon is struggling to keep head above water, many companies are closing their doors and causing unemployment

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It is not only the Edcon clothing industry that is struggling, as many businesses have had to close their doors in recent months.

This is a far darker picture than Edgars had managed to get a loan to relieve his debt burden and retain his staff.

Edcon would not have been able to smoke the pipe if it had not received a lifeline of R2.7 billion, but that benefit did not befall the smaller businesses and more companies were forced to close the doors.

Edcon had another advantage – no one wanted to see its 140,000 workers lose their jobs, but small businesses couldn’t keep their staff, and retrenchment was pretty “unobtrusive”.

Construction company is suffering from poor economic conditions, and Group Five is struggling to keep its 3,500 workers in service.

However, this is just the tip of the iceberg, and if the scale does not swing positively, economists provide a greater dark time for workers in the country.

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It would take the ANC a thousand years to pay off debt if they were able to repay R100 per second

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The state’s ability to pay off its debt seems almost impossible. According to Center for Development and Enterprise (CDE) spokeswoman Ann Bernstein, it would take the state 1,000 years to settle its debt if they were able to repay R100 per second.

The gap between income and expenditure since 2009 is the main reason for the enormous debt burden.

The spokesman said some state entities must be closed down because of the inability to be managed economically.

Bernstein added that the government should show the necessary leadership to bring about change, but experts say the unions will not allow people to be fired because too much has been employed.

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ANC-regime drowning in debt -, domestic debt burden exceeds R7 billion and all this for SOE bailouts

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The ANC government is drowning in debt, and its domestic debt burden is a disgrace that is inexcusable but also remains unacceptable.

The state owes businessmen in the country more than R7bn, and the foreign debt burden causes the country to receive junk status.

Gauteng is believed to be the biggest offender with a debt burden of R2,6bn that is older than 30 days and payable to businesses.

Concerns exist over the fact that several businesses have already closed their doors due to the state’s defaulting on debt.

The debt burden placed on state-controlled entities (SOE’s), such as Eskom, Denel, SAA and many others, is also a concern, while foreign debt is high that South Africa pays melons Rand interest every year.

With the decline in gold production, which is normally used as a means of payment, the ability to pay decreases, while illegal gold diggers deepen billions of Rand’s gold from old mines and trade on the black
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