Posts tagged with 'Eskom'

 

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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Medupi and Kusile power stations are still “off the grid” due to poor construction work, corruption and cost overruns

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More than 600 senior officials from Eskom and some executives were informed of the entity’s “turnaround” plan. According to documentation, Eskom is sitting without cash and has almost completely collapsed on several occasions.

R130bn has been loaned to the power provider and the state is expected to help as government announces increased tariffs. Eskom unbundling continues but will take four years to finalize. So the future is still bleak around the entity with its overloaded workforce and top structure officials.

In the last two years, Eskom reported a loss of R2.3 billion while R19.6 billion was wasted on unauthorized expenses.

In the meantime, Medupi and Kusile power stations are still “off the grid” due to poor construction work, corruption and cost overruns.

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Taxpayers will now have to bailout the Ramaphosa regime after Moody lost patience with SA’s poor economic situation and proposes a tax increase

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The poor economic conditions, unemployment, little foreign interest, the land grab program, Eskom and other entities’ financial inability are all reasons why the country is in such a mess.

Moody’s has pointed out to the ANC-regime that it will have to raise taxes to fix the mess at Eskom, which is the first step to a series of tax hikes.

With the SABC, Denel, SAL, Eskom, and several other entities failing to be a profitable industry as it was years ago, the regime is pushing to raise taxes.

The poor decision to launch a National Health Plan while the country is in junk status is considered to be one of the stupidest decisions the Ramaphosa regime has yet made, which will also lead to astronomical increases in taxes.

Moving out of professional corps such as doctors, nursing staff, lawyers and others is the strongest indication that the country is heading for an enormous crisis that cannot be reversed.

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Soweto’s huge debt burden amounts to more than R17 billion, where illegal power connections are more the rule than the exception in residential areas

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Soweto has been identified as the great sinner when it comes to outstanding debt to Eskom. The latest figures show that Soweto’s debt to the power provider is over R17bn.

Last week, technicians threatened that they would no longer perform repairs in neighborhoods where their security is threatened, areas effected including  Soweto.

Herman Mashaba, the mayor of Johannesburg, however, pleads for residents who pays for services and will now be disadvantaged by the “small” amount of residents who do not pay.

Illegal power connections are the rule rather than the exception in the residential area, and Eskom workers dare not dare to remove the dangerous and illegal drainage wires.

Information obtained shows that where drainage wires were removed, it was replaced with a new cables the next day.

-Read the original article in Afrikaans in Vryburger / 2019-07-17
This report does not necessarily reflect the opinion of
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Parasitic Parastatal Eskom, paralysing SA as the country runs out of money. Unless considered action is taken, not just talk – South Africa remains on the brink of destruction

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When Finance Minister Tito Mboweni on Tuesday told MPs government would have to review its funding requirements, he put into financial jargon that, actually, South Africa’s running out of money. And Eskom is to blame, in the main.

Bluntly put, Tuesday’s Special Appropriation Bill is scraping together R59-billion extra for Eskom — that’s in addition to the R23-billion a year already announced in February’s Budget — to ensure the power utility keeps its lights on.

The bailout timing is crucial — a week to the day before Eskom releases its financial results. Twice delayed already, it’s now on public record the power utility wasn’t a going concern; effectively bankrupt, it can’t meet its obligations under its own steam. The Special Appropriation Bill’s proposed R59-billion bailout over two years has ensured the auditors, on the back of such an official guarantee, can now sign off on the Eskom financials.

“Eskom’s funding pl
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Government employees face 10% salary cut to fund crippling Eskom since National Treasury’s box is empty

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National Treasury director-general Dondo Mogajane has said that the best way to fund the bailout of failing state-owned enterprises could be to cut the salaries of all government employees by 10%, according to a report in the City Press.

The government has to find a way to close a R120-billion hole in its budget, which is the result of acceding to a R59-billion bailout for Eskom as well as a shortfall in tax revenue for the fiscal year ended March 2020.

“National Treasury’s box is empty,” Mogajane said to the City Press.

“Growth is not coming through and tax revenues are not there. We are in trouble. The government needs to reduce spending.”

“If we are going to be serious – without people losing their jobs – let us reduce the salaries and stop the bonuses,” Mogajane said.

In response to this plan, unions said that they would not accept the revocation of bonuses and salary cuts for their workers.

“Any talk
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#ParasiticParastatal – SA Express is just another bottomless pit swallowing taxpayers’ money

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It is disturbing to realise that recently another enormous lifeline was quietly given to SA Express while all the attention was on Eskom, the SAA and the SABC. According to the Free Market Foundation, SA Express received a lifeline of R1,24 billion from the government in November last year and was now given government guaranteed financing amounting to R300 million.

It seems that the Free Market Foundation forced SA Express by means of the Promotion of Access to Information Act to disclose its financial statements and managerial account data.

SA Express has become a large hole draining tax money from the fiscus dam and if it continues in this way, it will drain everything until there is nothing left. The ANC will have to realise at some point that the country does not have an inexhaustible source of money and that public enterprises cannot be saved from financial ruin indefinitely.

Like with e-toll, taxpayers will get to a point where they will n
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#ParasiticParastatal – SA Express is just another bottomless pit swallowing taxpayers’ money

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It is disturbing to realise that recently another enormous lifeline was quietly given to SA Express while all the attention was on Eskom, the SAA and the SABC. According to the Free Market Foundation, SA Express received a lifeline of R1,24 billion from the government in November last year and was now given government guaranteed financing amounting to R300 million.

It seems that the Free Market Foundation forced SA Express by means of the Promotion of Access to Information Act to disclose its financial statements and managerial account data.

SA Express has become a large hole draining tax money from the fiscus dam and if it continues in this way, it will drain everything until there is nothing left. The ANC will have to realise at some point that the country does not have an inexhaustible source of money and that public enterprises cannot be saved from financial ruin indefinitely.

Like with e-toll, taxpayers will get to a point where they will n
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Natasha Mazzone (DA) fears Eskom could plunge SA into a “Chinese debt trap”, China is already taking countries for bad debts

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The revelations about Eskom are pouring in from the state capture inquiry. Natasha Mazzone believes their secret deals with China are “risky business”.

We’ve experienced a shuddering last few days at the state capture inquiry. Former Eskom executives who were present when the rot of corruption set in have lifted the lid on some pretty heinous behaviour: It’s been enough to convince Shadow Public Enterprises Minister Natasha Mazzone that the utility has put South Africa on a precipice.

Eskom’s risky business
Well, where do we start? We heard on Friday that ex-Chief Financial Officer Anoj Singh wanted to jump head-first into a R25 billion loan with Chinese firm Huarong Energy. Eskom treasurer Andre Pillay told the commission that the crippling financial deal only fell at the final hurdle when terms couldn’t be agreed later down the line.

Then you’ve got the jaw-dropping situation with Tegata: Eskom gave
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Gordhan hires “specialists” to investigate unplanned rolling blackouts at Eskom’s, however the problems are largely due to inexperienced staff not having the ability to do the work according to requirements

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Gordhan hires 11 “specialists” to tend to Eskom’s problem, however the unplanned rolling blackouts is largely due to inexperienced staff in-service, and lacking the ability to do the work according to requirements.

Minister Pravin Gordhan has appointed eleven industry specialists as the “Eskom Technical Review Team”.

The coordinator is Dr Tsakani Mthombeni, chair of the Energy Intensive Consumer Group, and he also serves on Ramaphosa’s “Sustainable” Eskom Task Team.

The team must investigate unplanned maintenance outages that are not applied to a scheduled system.

Operators errors that cause units to turn off unplanned, technical and other operator related issues that prevent units from functioning effectively form part of what needs to be investigated.

However, experts argue that the problem is largely due to the inexperienced staff, and not having the ability to do the work accordin
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