Transnet swings back into profit as it posts first unqualified results since 2018

[sefeddt]

With so much vandalism and damage I would be keen to see the productivity stats as to what the majority of Transnet staff of doing everyday to take home a monthly salary.

 

[Phylax]

You see? That is the spirit, not moaning when state companies are being run badly and moaning even more when they are being run well.

Dude, there is no way you can me this delusional...the Gods be with you my man!

 

[TheChamp]

Because the ANC are getting desperate. They are grasping at straws. Just like you are.

They are willing to nuke the definition of an unqualified audit such that they get 10 minutes of praise in the media.

When did they start to get desperate? Because the AG has just announced municipal audits and they are still performing dismally, why didn't the minister just grant the exemption to help them trounce the DA?

 

[Phylax]

But you do realize I did not join this forum yesterday, right?

Omw, you want us to sing your praises again?!

 

[Phylax]

The 4 stages of Transnet denialism.

> Transnet is well managed because they posted a profit and an unqualified audit.
> Transnet didn't post a real profit, but at least they got an unqualified audit.
> Transnet made a loss, but they needed an unqualified audit to get their act together, so irregular expenditure must be excluded from their financial statements. <= TheChamp is here
> Transnet made a loss, and they received an unqualified audit because of ministerial interference.

Kak funny!!!

 

[konfab]

When did they start to get desperate? Because the AG has just announced municipal audits and they are still performing dismally, why didn't the minister just grant the exemption to help them trounce the DA?

If municipalities go bankrupt, nothing major happens.

SOEs, including Transnet have cross default clauses on the loans they have taken out. Which means if one defaults on loans, like Transnet, all the loans with Eskom, Prasa, SAA, Post office and so on are defaulted as well. Which means the national government has to pay back every cent as the guaranteer of the loans.

The key condition refers to SAA defaulting or compromising with its creditors on any of its leases or other loans: “… if a specified amount (typically $10m) of Financial Indebtedness is not paid by SAA after being declared due, repayment of the debt may be accelerated.” So, all debt could become due at once – and that would be an estimated R64-billion just for aircraft leases. And then there’s the 30 or so billion rand owed to the banks. Add in staff severance and it’s a chunky R100-billion.

And that’s not all. The memo goes on to note: “Almost all of the finance/leasing agreements are subject to a Cross Default clause so that, if SAA is in default on one loan document/financial indebtedness, this will cause a default in all the finance/leasing agreements.” This includes Eskom’s loans on power stations. Estimates suggested that this exposure may be in the order of another R300-billion.

https://www.dailymaverick.co.za/art...ption-what-does-business-rescue-mean-for-saa/

Basically, if Transnet goes under, the South African government is bankrupt.

The ANC know they are getting removed from power in 2024. Their job now is to spit and paper everything so that it doesn't collapse when they are in office.

 

[Phylax]

You are full of drama, Why did the ANC had to endure all the bad audits and allow the DA to shine if it's so simple to get a clean audit?

I get audited yearly on a whole list of things.

IF I do my work as I am supposed to do throughout the year, getting a compliance is dead easy BUT if I do not do work as I'm suppose to do it I get a non-compliance.

Really as easy as that...

 

[Pegasus]

The same reason we get excited when the AG announces the municipal audits and the DA's municipalities are up there, with their names in lights, what has changed?

I am just continuing with the rich MyBb tradition of celebrating good governance, I don't get the sudden apprehension from everyone, are you people sick or something?

We don't get excited about DA municipalities getting clean audits. Its been the norm since they started running them.

If the DA had been running transnet etc since 1994, do you think they will have been getting clean audits?

 

[Avbob se stoep]

This is very strange. An unqualified is one given without exemptions according to the GAAP, suppose our AG operates under reporting practices. And if you give those exemptions, how do we know what is being reported is worth the keyboard it was typed on?

SOE's do not use GAAP, and they do not fall under the Companies Act. They fall under the Public Finance Management Act which prescribes GRAP, my guess is that PMFA can bend the rules that they create.

 

[TheChamp]

We don't get excited about DA municipalities getting clean audits. Its been the norm since they started running them.

Lies.

If the DA had been running transnet etc since 1994, do you think they will have been getting clean audits?

I haven't seen the audit performance of the companies they control where they govern but if we use the municipalities as reference they probably would, and everyone would jump up and down with joy and celebrate the good performance.

 

[porchrat]

But you do realize I did not join this forum yesterday, right?

I personally don't anyway. It's simply what a government should be doing. The primary thing I want from my government is to respect my human rights, secondary is use my tax money effectively.

The ANC traditionally does neither of these things, so when it happens I get excited. It's kind of sad.

 

[Pegasus]

Lies.

I haven't seen the audit performance of the companies they control where they govern but if we use the municipalities as reference they probably would, and everyone would jump up and down with joy and celebrate the good performance.

Lies?
Please show me where I got excited about clean audits? Otherwise you would be the liar, along with being a useful idiot.

And no. No jumping for joy. Just relief.

 

[Oldfut]

If municipalities go bankrupt, nothing major happens.

SOEs, including Transnet have cross default clauses on the loans they have taken out. Which means if one defaults on loans, like Transnet, all the loans with Eskom, Prasa, SAA, Post office and so on are defaulted as well. Which means the national government has to pay back every cent as the guaranteer of the loans.



https://www.dailymaverick.co.za/art...ption-what-does-business-rescue-mean-for-saa/

Basically, if Transnet goes under, the South African government is bankrupt.

The ANC know they are getting removed from power in 2024. Their job now is to spit and paper everything so that it doesn't collapse when they are in office.

Article in BD today exposes Transnet's pretty threadbare performance; the 3 year audit escape dodge, the property revaluation dodge and the last minute USD1bn bond default dodge. The loco ripoff is still ongoing with a new one looming.

Performance was not good "but miners had to cut production because hundreds of Transnet’s trains could not run at all, never mind on time." the article notes. Finally "Despite the positives, wrote Absa’s analysts, “lack of significant progress on resolving operational issues and slow momentum of private sector participation could continue to weigh on the investor credit appetite”". Not a good prognosis it seems.

 

[TheChamp]

Lies?
Please show me where I got excited about clean audits? Otherwise you would be the liar, along with being a useful idiot.

And no. No jumping for joy. Just relief.

Since when is this about you?

We don't get excited about DA municipalities getting clean audits. Its been the norm since they started running them.

If the DA had been running transnet etc since 1994, do you think they will have been getting clean audits?

 

[Pegasus]

Since when is this about you?

Am I not part of "everyone"?

 

[Phylax]

Article in BD today exposes Transnet's pretty threadbare performance; the 3 year audit escape dodge, the property revaluation dodge and the last minute USD1bn bond default dodge. The loco ripoff is still ongoing with a new one looming.

Performance was not good "but miners had to cut production because hundreds of Transnet’s trains could not run at all, never mind on time." the article notes. Finally "Despite the positives, wrote Absa’s analysts, “lack of significant progress on resolving operational issues and slow momentum of private sector participation could continue to weigh on the investor credit appetite”". Not a good prognosis it seems.

Hey, at least the CEO lady has a MBA and a Honors in Economics!

 

[The Trutherizer]

@rvZA
You somehow missed this article for some reason

He doesn't do optimistic.

 

[The Trutherizer]

Noted as a data point.
Hoping for unqualified results for several more years to a decade.
Which might even restore some of my confidence in Transnet.

 

[Calkem]

Transnet is a complete joke.

If there was no cooking of the books, I would celebrate, but, unfortunately they are failing on enormous proportions to service their clients. To this day the mines are struggling to ship out ore, mine houses are paying over 500% transport costs (road transport) to get their products to the ports, they using side tipper transport, we are losing billions every month, yes Transnet is posting a profit but the losing billions every month. The stolen infrastructure is under reported. Speak to the Transnet people and they will tell you a different story, senior managers are still using laptops that are over 8 years old. Transnet is losing billions due to total management faults.

ACSA for example is a "well performing" SOC, with its own issues, its about consistency. I for one do not believe that an ANC cadre CEO will print a bad picture of a beautiful portrait. I listened to the CEO on the Money-Show, she was upbeat, but failed to answer on the critical issues.

It is easy to post profits when you are a monopoly service provider and your customer demands/pleas far, far your capabilities. In my view, its never the larger SOC that perform well but rather the " penny share" SOC's that perform well.

This is another classic case of government propaganda "We have posted a profit, we are doing well!" This is only ANC supporters would believe, and notice the ever increasing road traffic of side tippers to Richards Bay or Durban, all because it makes sense to pay over 500% for transport costs.

How gullible can you be?

 

[RedViking]

Something does not add up. On what did they make a profit?

We are talking here about a logistics and freight company that destroyed the railroad system, is currently destroying the road infrastructure by transporting everything by trucks, is covered in lawsuits, have lost control over anything logistics, nevermind that they can't meet the demand.

It would be amazing if this entity who functions on the brink of a collapse miraculously started making a profit, but can anyone explain to me how this is physically possible and what they suddenly did differently that turned a profit?

Does this include the repairing of the railroads and infrastructure that wasn't maintained for decades?

Is this despite all the strikes and truck riots and port closures?

Despite the 300 locomotives that are currently stranded?

Despite the 1000's of KM of copper theft?

Despite CRRC not wanting to supply Transnet with spares?

Despite 100 billion in irregular spending?

Despite 15 million lost in freight volumes in 2022?

This is extraordinary news. The turning point of South Africa. News of good things to come.

Ramaphosa is finally turning this economy around, Eskom going to show a profit soon, BBBEE going to take many out of poverty and the previously and still disadvantage is going to prosper!

Whoop!