Last week Eskom revealed that it made a R20.7-billion loss<\/strong> <\/a>over the last financial year and amassed net debt of R430.8 billion.<\/p>\n Eskom CFO Calib Cassim said the level of debt will need to be reduced to R200 billion to be sustainable.<\/p>\n To keep it afloat the government is giving it a R128-billion bailout over the next three years, but Johnson argues this is a colossal waste of money.<\/p>\n He said it is impossible for Eskom to right itself without four things:<\/p>\n The government is scared to implement these solutions, however, and continues to pour money in.<\/p>\n \u201cThis is a disastrous failure of governance and it means that the money handed over to Eskom will essentially be wasted,\u201d Johnson said.<\/p>\n \u201cIn effect it will be used to keep paying inflated salaries to a large number of unnecessary workers and to finance all the sweetheart deals that make Eskom\u2019s costs so high.\u201d<\/p>\n \u201cRamaphosa has declared that the highest national priority is the maintenance of their high consumption levels.\u201d<\/p>\n Eskom\u2019s R20.7-billion loss over the last financial year is the largest ever by a state-owned company in South Africa.<\/p>\n Eskom\u2019s acting CEO Jabu Mabuza told Radio 702<\/strong><\/a> that Eskom has overborrowed to the tune of R440 billion and that its revenue is not enough to service its current debt.<\/p>\n He added that Eskom is selling electricity at 90 cents which costs the company 112 cents to produce.<\/p>\n An additional problem is that many of the municipalities which it sells electricity to do not pay their bills. This, Mabuza said, amounts to around R40 billion.<\/p>\n While Eskom is heavily overstaffed, the company is prohibited from cutting jobs which makes it nearly impossible to become more efficient.<\/p>\n \u201cThe president said we can\u2019t retrench, which means we are looking at other ways. The pain has to be taken by suppliers, customers, shareholders, employees, and management,\u201d he said.<\/p>\n Over the past decade Eskom rapidly grew its workforce and expenses, but did not significantly increase its electricity output. In fact, it decreased in some years.<\/p>\n The graphs below show how Eskom landed in such a desperate financial situation.<\/p>\n Money handed over to Eskom is wasted as it will simply be used to pay inflated salaries to many unnecessary workers and finance corrupt deals.<\/p>\n","protected":false},"author":23,"featured_media":129460,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[27995],"tags":[181,35],"class_list":["post-315419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-eskom","tag-headline"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/315419"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=315419"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/315419\/revisions"}],"predecessor-version":[{"id":315435,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/315419\/revisions\/315435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/129460"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=315419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=315419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=315419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Eskom CEO confirms problems<\/h3>\n
Eskom\u2019s downward spiral<\/h3>\n
\nEskom Expenditure (lower is better)<\/h3>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/08\/Eskom-expenditure-640x276.jpg\")
<\/a><\/p>\n
\nMoney owed to Eskom by municipalities (lower is better)<\/h3>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/08\/Municipal-debt-640x236.jpg\")
<\/a><\/p>\n
\nEskom debt (lower is better)<\/h3>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/08\/Eskom-debt-640x303.jpg\")
<\/a><\/p>\n
\nEskom profit (higher is better)<\/h3>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/08\/Eskom-profit-640x240.jpg\")
<\/a><\/p>\n
\nNow read: Eskom posts R20.7-billion loss<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"