By Neo Sesinye
An Eskom default on its debt would be catastrophic for the South African economy as it would trigger cross-defaults of all government debt.
It’s been a bitter first quarter for Eskom employees. After recent disputes over salary wages, the state-run power firm Eskom reported a 2.3 billion rand ($171 million) loss on Monday, 23 July 2018 underlining the enormity of the task facing President Cyril Ramaphosa, who has pledged to turn the company around.
Eskom suffered a net loss of R2.3bn in 2018, compared with profit from the previous year, the state-owned power producer revealed at its financial results presentation on Monday.
The power utility said its net cash from operations declined from R45.8bn to R37.6bn, as it struggled with leadership and operational challenges.
Speaking at the announcement of Eskom’s financial results, the company’s Group Chief Executive Phakamani Hadebe said: “Despite satisfactory progress being maintained on the new build programme, as well as improved operational performance for the current financial year, Eskom continues to face significant challenges in the short to medium term. Revenue levels remain unsatisfactory, and the tariff increase of 5.2% for the current financial year further compounds the impact of the 2.2% tariff we received last year, and is therefore Click here to read entire article
Source:: IT News Africa