Broadband Infraco boost

[rpm]

Broadband Infraco boost (http://mybroadband.co.za/news/Telecoms/5201.html)


State-owned Broadband Infraco, which has operated under its new name for the last eight months, posted an operating profit of R18.7 million for 2007/08 but would have reported a R35.6 million operating loss if interest income of R61.4 million was not included, chairman Andrew Mthembu and acting chief executive David Smith have reported to parliament.

[smokey]

thats a novel idea. put your money in a high interest bearing account and make money that way. brilliant. a government co pany looking to make as large a profit as possible. no spending - why would they *cringe*

[ToxicBunny]

Wait.. why the hell are Infraco posting profits etc etc....

Being a parastatal they should be plowing the profits back into the business to improve the infrastructure.... and interest income?... We as a public need to be demanding an explanation of why that money is not being utilised to deploy infrastructure.

[Axis]

So I guess now that the Directors will get hefty bonuses just because they put the money in the bank and earned interest.

[HavocXphere]

There are many reasons why they would park the money somewhere for a bit. e.g. They get the money now but only need to pay the contractor later when the work is done.