Eskom’s catastrophic 800% increase in losses shows that things are going from bad to worse
30 July 2019
The Democratic Alliance (DA) notes with concern the R20.7 billion loss Eskom has posted for the 2018/19 financial year. This follows from a loss of R2.3 billion in the 2017/2018 financial year. This pattern outlines an increase in financial losses of about 800% from the previous financial year. This is in no doubt the result of years of corruption and mismanagement, leaving Eskom in its worst financial state in history.
Other worrying trends include the increase in municipal debt from R13.6 billion to R19.9 billion. Clearly, things are going from bad to worse at the utility.
Eskom is a sinking ship, and judging from Public Enterprises Minister, Pravin Gordhan’s announcement on Monday that the entity would appoint its current board Chairperson, Jabu Mabuza, as an interim Acting CEO, there is no permanent captain to steer the ship through this storm.
Given the fact that Eskom finds itself sinking financially, we cannot afford any form of board instability. The appointment of Mabuza as acting CEO will only bring his independence into question as the board’s primary responsibility is to hold the executive to account and perform proper oversight.