Posts tagged with 'Eskom'

 

59 billion bailout just been granted to struggling Eskom

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The National Assembly voted in favor of a special allocation bill on Tuesday that allows a bailout of R59 billion to struggling Eskom.

The bill was approved by 200 votes to 105 with ANC MPs believing the bill is essential to keep the lights on. These MPs argued that many of them grew up in a “permanent state of loadshedding” due to past inequalities.

Others, however, were opposed to this bill.

Nqabayomzi Kwankwa, MP of the United Democratic Movement (UDM), said it was astonishing that MPs were asked to “throw money at the problem” after Eskom reportedly paid R4bn to suppliers too much.

Eskom is about R500bn in the red.

DA Ashor Sarupen said Eskom seems to be burning money instead of coal. “Every citizen is a hostage of Eskom. We are hostages to the power cuts that cause huge economic losses. We are hostages to their bail requirements. We are hostages to their endless management crises, ”says Sarupen.

Wouter Wessels, FF Plus MP and chief spokespers
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Dawie Roodt: “SA economy can be restored if Eskom privatizes”

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The South African economy can recover, but then the Ramphosa-regime must admit that it does not have the capacity to do so.

This is the opinion of an economic adviser who says the one big reason why the country stumbles economically is because the whole world sees how wrong the Ramaphosa regime is in times of severe economic decline in the country.

The extremely poor management applied at Eskom is one of the main reasons that billions of Rand end up in a bottomless pit, it is said.

Even Dawie Roodt confirms that the poor management of Eskom can be changed to make the power supplier effective again.

The most important mistake the regime has refused to rectify so far is to privatize Eskom so that the country can maintain an efficient power supply network that will also lead to international investors’ interest in coming back to SA.

 
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Foreign investors sell R25bn worth of shares in SA

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According to economists, investors are preparing for D-day for Eskom. South Africa is currently doing better in financial terms than Nigeria, Turkey and Lebanon.

Foreign investors have sold more than R25bn of the country’s shares and the Rand is among the five worst performing currencies against the Dollar.

Even Ramaphosa acknowledged that the situation at Eskom was untenable. Meanwhile, Gwede Mantashe says that SA does not have an energy crisis, but does have an energy problem!

Political analysts point out that the problems caused by Eskom will eventually lead to downgrading to junk status, and that jobs will reduce even further thereafter.

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ANC regime just cant resist the old folks money – State still wants to use pensioners funds as a bailout for bankrupt SOE’s

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The PIC group announced that they will meet in November to consider options to help the bankrupt state entity Eskom with its debt. Pensioners were given the assurance that the value of pensions would not be “wasted”.

PIC already carries almost R90 billion of Eskom’s debt and more than one million public servants’ pension is currently handled by PIC.

Economists agree that further financial advances to the power provider will not save the entity from its plight.

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Eskom’s municipal debt rises to R23.5 billion – Lets face it! Management and board of directors do not possess management skills to run this entity

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Eskom’s inability to function effectively has again emerged with the latest financial information released.

Municipalities already owe Eskom R23.5 billion, according to the report released by Minister Pravin Gordhan.

The disclosure shows that the debt to be paid to Eskom is still rising, and is a sign that the entity is not prepared to set foot and cut off municipal electricity supply if they fail to settle their accounts clockwise.

In March this year, Gordhan reported that municipal debt to the power supply stood at R20bn, but only increased to R23.5bn 5 months later.

This is clear evidence that Eskom’s management and board of directors do not have the skills to manage the entity, informed sources said.

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Eskom – in return for R59bn bailout from National Treasury, Eskom must recover Soweto, municipal debt

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National Treasury is set to impose 28 conditions on Eskom in return for a R59bn lifeline to keep the cash-strapped power utility afloat and enable it to pay interest on its mounting debt burden.

Treasury updated Parliament’s appropriations oversight committee on the conditions attached to an appropriations bill on Wednesday. The bill, which has not yet been passed by Parliament, grants R59bn to Eskom over two years. This is in addition to R69bn over three years announced by Finance Minister Tito Mboweni in his maiden February budget.

In addition to regular and detailed reports of all its finances, Treasury has stipulated the utility needs to recover all debt owed to it by errant municipalities, national department and corporations, including Soweto.

“Eskom cannot provide electricity and not collect debt,” Treasury’s acting director-general of the assets and Liabilities Tshepiso Moahloli told MPs. “Members, we know that between Soweto and municipalities –
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Eskom drowning in debt, will need R69 billion to service its overflowing liabilities

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Eskom chairman Jabu Mabuza during the power utility’s annual financial results presentation on November 28, 2018 in Johannesburg, South Africa. During the presentation, it was revealed that Eskom’s debt service costs have doubled in a one year to R45bn.

Jabu Mabuza addressed the Portfolio Committee on Public Enterprises on Wednesday and announced Eskom is owed R20 billion by municipalities.

The chief executive officer announced that the power utility is in a critical condition as government’s financial support only addresses short-term liquidity, and Mabuza revealed that these issues will be detailed in the progress report, National Treasury and the Minister of Finance are currently working on.

Mabuza noted that there is a need in establishing an energy plan for the power utility, as the country’s condition is critical in an ever-changing energy landscape; he stated that the annual report will be made public and it will prove Eskom’s financial perfo
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Trade unions are rejecting ANC’s plans to sell non-performing SOE’s

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All indications are that the ANC is prepared to execute the Tito Mboweni plan and sell the non-performing entities.

For the ANC it is like swallowing a prickly pear with thorns and all, because it is a testament to their inability to run certain entities profitably.

The Ramaphosa government faces an enormous fiscal dilemma, and the sale of various entities will not only be humiliating, but will also leave many ANC senior workers unemployed when private entities take over the entities.

However, the question is whether Cosatu and other unions will agree to such a move, knowing that their own members may lose their jobs because it is known that the state entities are not profitable because too many people are employed was taken.

Institutions such as Denel, SAA, Eskom, Transnet, and various other entities are likely to come under the “selling spotlight” when negotiating with the unions that will oppose the idea.

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Eskom problems not solved yet – Possibility of load shedding exists in the coming months

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The DA said in a statement on Thursday that it had reliably heard that Eskom had issued a warning to municipalities about the “strong possibility of load shedding in September and October” this year.

Natasha Mazzone, DA’s shadow minister of public affairs,  said in the statement that the opposition party has now written to Eskom chairman Jabu Mabuza for transparency in order to clarify the matter.

“Eskom has continually failed in its mandate to provide reliable and sustained electricity supply and it appears as if millions of South Africans and the faltering economy will be abandoned by Eskom again,” says Mazzone.

According to the statement, each load-bearing phase is estimated to cost the country about R1 billion a day.

“Eskom has repeatedly plunged our country into deep trouble. South Africa cannot afford a repeat of the load shedding of the country earlier this year, ”says Mazzone.

The DA is of the opinion that the ANC also does not come up with
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Thank you SA for voting ANC – SA is broke thanks to the thieving done by ANC cadres in government

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It’s official: the South African state is bankrupt. President Cyril Ramaphosa confirmed it three weeks ago when he responded to questions in parliament.

Ramaphosa’s exact words were: “Our resources are now depleted.”

In simple terms, this means the government has run out of money.

In a normal country, such a statement by the head of state would have, at best, made national headlines. That it went unnoticed reveals a great deal about our journalists’ obsession with the fluff that constitutes the vacuity of our daily politics.

If you want to understand what it means for a state to run out of money, look at South African Express. It has grounded its planes. Last week, it told MPs it is struggling to pay salaries.

SA Express is not unique. Employees at Denel are not sure for how long their salaries will be paid. Eskom pays salaries from debt. It needs about R70bn for operations and debts. But its revenue i
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