Posts tagged with 'SOE'

 

Alexkor, SA state-owned diamond company is on life support

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South Africa’s state-owned diamond mining enterprise Alexkor is desperately in need of cash to pay expenses, but does the struggling entity deserve more funding?

Its marine-based concessions stretch from Alexander Bay to Port Nolloth, while its land-based concessions span the equivalent of 865km2. It mines the latter through its Pooling and Sharing Joint Venture (PSJV) with the Richtersveld community.

Despite carat sales having increased from 41 941 units to 70 061 in the year to end-March 2019, diamond sales only amounted to R209.9 million (2018: R208.7 million). Cost of sales was R152.9 million (2018: R126.8 million).

The reasons given for this poor performance: an oversupply of diamonds in the market, as well as the quality and size of the diamonds produced.

Land and shallow water diamonds achieved an average of $456.77 per carat (2018: $718.86), while diamonds from its deep water mining concession achieved an average price of $305.64 (2018: $187.56).
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Cash-strapped Road Accident Fund struggles to pay billions in outstanding debt – This is just another SOE that is collapsing under ANC-regime’s rule

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As thousands of road accident victims are anxiously waiting to be compensated by the cash-strapped Road Accident Fund (RAF) following court orders in their favour, the Gauteng High Court, Pretoria, is expected to soon deal with the fund’s inability to pay up.

Hundreds of claimants recently turned to the court where they had obtained an urgent order to attach eight of the RAF’s Absa bank accounts. The bank was ordered to use the proceeds from the accounts to pay the 346 injured victims.

The RAF in turn headed to court last month, in which it wanted this order lifted, as it said it simply couldn’t afford to pay these claimants, as its outstanding debt was more than R17billion. The fund said it couldn’t operate without its bank accounts as it is was struggling to stay afloat.

This application was not entertained by the urgent court, which meant that the bank accounts remained attached. But it came to light that the RAF then instructed the bank not to honour t
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SAA’S business rescue position – Bankrupt SOE will be restructured,no further bailouts to be handed out – Are their wings finally cut?

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Minister Pravin Gordhan’s stance at a board meeting of the bankrupt SA Airways has sent shock waves, the councilors as well as the shipping company’s worker are totally stunned by the so-called “business rescue position” that will be exercised without any delay.

The minister also confirmed in a statement that the board of the airlines has now adopted a resolution this cash strapped entity will be restructured, and that the government can no longer provide financial assistance.

Experts point out that this is the last effort to keep the state-owned entity standing(SOE), saying SAA’s life could drastically be shortened if they do not retrench about 1,000 redundant workers, and freezing salary adjustments for the next two years.

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Denel’s huge contract worth billions of Rand halted after dispute over inspection arises – How long will the cash-strapped SEO remain standing?

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South Africa has blocked Denel’s huge contract worth billions of Rand. The contracts, the largest of which are for weapons in the two countries, Saudi Arabia, and the other in the United Arab Emirates, have been blocked and could eventually be canceled by the buyers.

South African manufacturer Denel, which, like many other state entities, is currently struggling to keep its head above water, can hardly afford to lose the giant orders because a dispute over inspection has arisen.

Informed sources point out that this could also mean that thousands of jobs could be jeopardized by the struggling armaments manufacturer.

The inspection dispute apparently revolves around a clause in the export documents that requires foreign customers not to transfer weapons to third-party institutions or countries.

The provision further states that South Africa is allowed to inspect the facilities, and the provisions could lead to cancellation of orders amounting to billions of R
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Parasitic SOE, Prasa also bankrupt? – Eskom threatens to cut power supply to trains due to default in payment

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This past week, the ANC’s president, Cyril Ramaphosa, had to intervene so that Eskom did not cut off the Passenger Rail Agency of SA (Prasa) power supply.

The power supply would be cut off if the president did not intervene, and Prasa’s power supply for electrically powered trains would be cut off, which would force the rail network to a complete standstill.

Prasa’s default on its power supply is considered to be another bankrupt entity like Eskom and many other state entities.

Prasa is the latest case of the state’s unstable entities, and is attributed to the “self-enrichment” of workers who constantly demand unreasonably high salaries while mismanagement continues unabated.

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Pull the generator closer and get those candles ready, Eskom #rollingblackouts will be with us shortly

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Eskom expressed its disappointment over the decision of the rating agency Moody’s that further downgraded the bankrupt entity of the state.

The Moody’s Investment Service downgraded Eskom from a B2 to a B3, which means the entity has no confidence in consumers or the rating agency.

With the downgrade, Eskom is brought into line with the poor performance of the ANC’s financial standing, and the distrust it creates at international and national level.

So the possibility exists that with the crisis management system, Eskom can once again start applying the load shedding system to alleviate its financial position, but the country will perish because of the impact it will have on the general financial position.

Late yesterday afternoon, Eskom acknowledged that it could reintroduce short notice “because the system is under pressure”, which is believed to be financial pressure.

 
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Bankrupt SABC gets R2.1 billion bailout to continue mismanagement, CEO receives excessive amount of R3.9 million for 9 months of work

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Communications Minister Stella Ndabeni Abrahams has just announced that the SABC will receive R2.1bn as part of a R3.2bn bailout. The ANC regime is pumping billions of rand into the ineffective SOE and has now been warned that no further aid will be provided.

The struggling national broadcaster once again got money from the state coffers to continue its mismanagement. However, the government apparently set strict conditions before the money was released. The conditions include that the public broadcaster must present a list of identified initiatives to improve its inputs, submit ideas to save costs as well as conduct a thorough investigation into the cause of its financial collapse and a separate financial reporting for providing public and commercial broadcasting services. Abrahams says that the SABC currently meets most of the conditions set by the government.

Meanwhile, experts say that the SABC should first get rid of its weakest divisions, but its sale will
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Hostage drama continues – Eskom holds ANC regime prisoner, parasitic parastatal seeks further R59 billion to squander

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The hostage drama in which Eskom has captured the ANC regime has now reached its highest point of arrogance.

With a new demand to get R59bn intended for the next two years for mismanagement, all reasonable limits have completely surpassed, say economic experts and informed businessmen.

Eskom’s debt burden is already so high that there is almost no possibility that the struggling power provider will ever be able to recover it.

With the decline in electricity demand, South Africa is on the verge of a total economic collapse, and the worst can be expected in the coming weeks.

Finance Minister Tito Mboweni’s suggestions that Eskom should pay its workers less and have less unions on their feet, ready to make the country even more unmanageable.

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