Posts tagged with 'debt'

 

Bankrupt Eskom pleads for another government bailout as debt climbs beyond R450bn

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The power utility’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

Eskom CEO and board chairperson Jabu Mabuza said the power utility’s debt levels have reached the ceiling.

Eskom’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

He said the power utility has not done enough to generate more revenue.

The acting CEO also admitted that Eskom was borrowing money to pay off its debt.

“Our revenue over the past 10 years, increasingly so over the last five years, has actually been flat to about 1% per year. On the other side, we’ve had a ballooning debt that we have not been able to collect which has totalled to R38 billion.”

Mabuza said the only function Eskom could control was its own expenses.

Finance Minister Tito Mboweni tabled a bill before the National Assembly i
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Economist says Zuma government cost taxpayers about R470bn – What a waste of good money!

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Nedbank chief economist Dennis Dykes says the Zuma regime has cost South Africa R470bn.

Dennis Dykes says they have done a thorough calculation that is South Africa’s loss due to corruption, maladministration and distorted policies in Jacob Zuma’s second term.

He says there was an estimated loss of R140bn due to taxes lost and now having an impact on the economy.

He also points out that government debt would also have been 49% less, amounting to R250 billion.

The amount lost in the latter half of Zuma’s regime is greater than Eskom’s total debt burden.

In response to the interview that appeared in Business Day, a businessman from Pretoria was merely saying, “Zuma, you bastard.”

Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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Eskom’s prior request for tariff hike slammed: Eskom’s stage 4 load shedding is a direct attempt to sabotage, and blackmail SA – Ordinary citizens are becoming the scapegoat to foot the bill of its complete and utter failures and lack of planning

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The South African Communist Party says Eskom’s management is rolling out massive blackouts in an attempt to blackmail South Africans to accept privatisation of the power utility.

Eskom resumed with loadshedding for the first time this year on Sunday.

Power cuts continued yesterday and Tuesday after a failure of generating units.

“The management of Eskom, in the manner that they are rolling out these blackouts, is trying to blackmail us so we must accept whatever should befall Eskom. We should not be blackmailed into that. That’s why we believe that these blackouts can be avoided,” SACP first deputy general secretary Solly Mapaila stated.

Mapaila said one of reasons given by Eskom for load shedding was low stocks of diesel.

“Why can’t they procure enough diesel on time? It is all of those things that I think are just unacceptable. The reasons why there were blackouts and so forth were issues of leadership incompetence. W
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Soweto owes ESKOM R 17 billion, half of the total national debt – Just cut their bloody electricity to this township!

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ESKOM is desperately trying to recoup money owed by municipalities – Soweto, in particular, is making that task all the more difficult.

ESKOM, South Africa’s national electricity provider, had an exceptionally shocking year in 2018. Financial losses reached dismal new depths. Irregularities, both fiscally and operationally, left the state owned enterprise floundering in the doldrums of gross incompetence. Dubious coal shortages, failed maintenance plans, industrial action and the lingering stench of corruption only added to ESKOM’s woes.

ESSKOM looks to recoup its losses:

Inevitably, ESKOM’s problems become the problems of South African citizens. The much-loathed load sheddingschedule made an ominous return. This year, the knock-on effects of ineptitude will be felt the hardest, as the power utility looks to increase the cost of electricity by at least 15%.
The tariff increase is an attempt to rebuff financial failings – to incre
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SA’s largest township owes Eskom R17 billion – Soweto residents respond: Hell no, we won’t pay for electricity!

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City Press visits Soweto and asks residents why they don’t pay for their electricity and how they could help Eskom to recoup the R17 billion owed by the people who live in SA’s largest township.

On Wednesday morning, as load shedding hit the township of 1.3 million residents, small businesses were losing money, and children had been sent home by their teachers, who said they couldn’t teach in a blackout.

While some people City Press spoke to paid their electricity bills and knew that their nonpaying neighbours were contributing to the crisis, others were steadfast in their refusal to pay for the power they used.

I pay because we have to

Sibongile Nyathi (40), who has been selling kota in Rockville for seven years, says she pays her electricity bills because, if she doesn’t, her small business will suffer.

“I can’t live without electricity, so it is important for me to pay. I am encouraging people of Soweto to also pay f
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Widespread corruption and mismanagement are the order of the day at KZN municipality – Eskom debt amounts to nearly R50 million – Municipalities under the control of the ANC are folding, one after another

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The ANC’s “policy” to make the country ungovernable is producing vigorous fruit.

The Abuqulusi municipality (Vryheid) owes Eskom just short of R50 million. Widespread corruption and mismanagement caused the council to be placed under administration.

Suddenly, the Natal Department of Co-operative Awakened Government and Traditional Affairs and stated that they were “stunned” about the state of the municipality.

Read the original article in Afrikaans on Die Vryburger

This report does not necessarily reflects the opinion of SA-news.

 

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A tale of two (broken) cities – Mahikeng, the former pride of North West for its cleanliness and progressive policies, is now overrun with potholes, refuse and debt thanks to the ANC-regime

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Mahikeng, the former pride of North West for its cleanliness and progressive policies, is now overrun with potholes, refuse and debt. Driving is a gamble and drinking tap water is an extreme sport. Mthatha is much the same.

MAHIKENG

A song cut from one of motswako rapper Mo’ Molemi’s albums could provide the best evidence of just how long Mahikeng’s residents have endured driving on potholed streets.

The track Maspala (municipality) was supposed to have been included on the album Motsamai seven years ago.

In it, Molemi sings in Setswana: “Kere somebody thiba dipotholes, kara yame ya tlola every time I am on the road. Ke a go kopa maspala thiba di pothole; go konega rim every time I go home.”

Loosely translated, it says: “I say somebody fix the potholes; my car bounces every time I’m on the road. I beg of you municipality fix the potholes; rims get damaged every time I go home.”

For the past few weeks, Maspala
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Soweto owes Eskom R17 billion, half of the total national debt – Still the lights or on! But if citizens residing in towns do not pay their municipality bill the electricity gets disconnected without hesitation

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How is Eskom going to increase its financial yield while still struggling to retrieve the R34 billion it is currently owed by defaulting municipalities?

Eskom is desperately trying to recoup money owed by municipalities – Soweto, in particular, is making that task all the more difficult.

Eskom, South Africa’s national electricity provider, had an exceptionally shocking year in 2018. Financial losses reached dismal new depths. Irregularities, both fiscally and operationally, left the state owned enterprise floundering in the doldrums of gross incompetence. Dubious coal shortages, failed maintenance plans, industrial action and the lingering stench of corruption only added to Eskom’s woes.

Eskom looks to recoup its losses
Inevitably, Eskom’s problems become the problems of South African citizens. The much-loathed load shedding schedule made an ominous return. This year, the knock-on effects of ineptitude will be felt the hardest, as
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South Africa Considers Handouts To Help Zimbabwe With Trouble Caused By… Handouts!

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The spiraling economic meltdown in Zimbabwe has prompted South African authorities to think about extending short-term credit to Harare and helping it to write off a $7.4-billion external debt.

In an interview with the Daily Maverick newspaper, South African Finance Minister Tito Mboweni said the two governments were discussing ways to settle Zimbabwe’s debt to the IMF, the World Bank and the Paris Club.

The sides were also weighing up the possibility of extending an existing credit facility which Zimbabwe had with the South African Reserve Bank.

Zimbabwe had previously provided collateral for the loan in the form of its holding of SA Land Bank bills, the minister said, noting the country had always repaid its loans under that facility in the past.

Experts say Harare is clearly desperate for a bailout from South Africa and/or any of its other allies to resolve an economic crisis which is slipping out of control.

Thousands of Zimb
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Desperate times calls for desperate measures, but is this the right thing to do? After all financial losses occurred due to incompetence, negligence and corruption – SAA is borrowing R3.5bn from local banks

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South African Airways (SAA) received a R3.5bn loan to keep it going until the end of March.

This forms part of the R21,7 billion SA management believes is needs to make its turnaround strategy succeed.

SAA spokesperson Tlali Tlali confirmed the R3,5bn was received from local banks.

This comes after National Treasury gave R5bn to SAA in October last year to repay debt.

According to Tlali, SAA will not be profitable before 2021, but plans are on track to save the state-run airline from its money pen.

SA’s acting chief financial officer Deon Fredericks said in November that the airline needed the R3.5bn by March. According to Fredericks, SAA will suffer a R5.2bn loss in the current financial year to end-March, and a loss of R1.9bn in 2019-2020. However, SAA management has already warned the rise in oil prices could hamper its expected timetable for a return to profitability.

According to Tlali, SAA’s route between J
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