Posts tagged with 'debt burden'

 

Eskom with a debt burden of R450 billion may be the downfall of ANC regime

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Political analysts say the actions of high-ranking officials in Eskom could lead to the demise of the ANC government.

The pressure is mounting on the ruling ANC regime from the inner circles as well as opposing structures as well as from extreme groups to act against those responsible for the mess in which the power supplier is currently facing its debt burden of R450 billion.

The claims are varied, but many expect the ANC to take action against Public Enterprise Minister Pravin Gordhan, who is closely concerned with Eskom’s problems.

The Red Brigade is demanding Gordhan’s sacking, while Deputy President David Mabuza himself helped to throw Gordhan under the bus.

There is also a feud against Ramaphosa, from people who believe he should have forced Eskom to stay with his company in order not to employ any loadshedding before January 13.

With all the turmoil, this could eventually lead to the disintegration of the ANC, wh
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Zuma in the last trench – application for appeal rejected

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After the Pretoria High Court rejected former ANC President Jacob Zuma’s application for appeal with costs, he is now on his way to the Appeal Court.

It is Zuma’s last trench he uses to stay out of jail, and although it is a method of escaping his final trial, the debt burden on court costs is only increasing.

Experts point out that his chances of winning the Appeal Court are extremely slim, and that it will have far-reaching consequences for the man if he fails again.

Political analysts, however, believe that Zuma is playing his cards well, and that with the possibility of a failure in the Appeal Case, he has already incinerated himself by spending a week in hospital, to be “sick again” after the court’s ruling ” to become.

After all, opinion makers say this is the successful method that the long-lived Schabir Shaik used several years ago to open the prison doors for his release so he
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Madupi still not complete after 12 years – It is a wonder that they haven’t blamed old Jan yet!

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Eskom says the Medupi power station’s Phase 2 stage is in operation, making it part of the power supply’s overall electricity output.

The announcement comes 12 years after the first donation was made to set up Medupi, but during that time, South Africa paid much more for the erection than initially budgeted.

In addition to building the power plant more than 200% more expensive, the cost of more than R150bn has shown that South Africa is not only irresponsible in managing its spending, but is also equally irresponsible in appointing those who had to do the erection.

Economists say the construction of Medupi and Kusile power plants eventually totaled R234 billion, but informed sources indicate that much more money is needed to bring the two power plants to full capacity.

The cost of the two exchanges further increased South Africa’s enormous debt burden, and analysts reckon it will take at least 40 years before Eskom&#8217
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SAA: More unions want to strike after Gordhan’s attempt at wage and severance dispute fails

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In support of Numsa’s strike, and in opposition to the view of ANC minister Pravin Gordhan, more unions have indicated that they will join the strike.

The circumstances in which SAA currently finds itself have left the state-controlled entity in unsustainable status, and the entry of Pravin Gordhan has increased the bitterness and power building on both sides.

Gordhan’s attempt to settle the dispute over wages and retrenchments failed, thereby extending the strike, which would mean millions of Rand per day to losses for the already bankrupt entity.

There are apparently insufficient funds to pay the staff at the end of November, and the huge debt burden will not come to an end without a radical intervention.

True to their actions, the unions once again help push the entity further into the abyss with their unrealistic wage demands.

Numsa also expects SAA not to apply any retrenchments, which means that the national airca
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Businesses go bankrupt in SA – Not only Edcon is struggling to keep head above water, many companies are closing their doors and causing unemployment

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It is not only the Edcon clothing industry that is struggling, as many businesses have had to close their doors in recent months.

This is a far darker picture than Edgars had managed to get a loan to relieve his debt burden and retain his staff.

Edcon would not have been able to smoke the pipe if it had not received a lifeline of R2.7 billion, but that benefit did not befall the smaller businesses and more companies were forced to close the doors.

Edcon had another advantage – no one wanted to see its 140,000 workers lose their jobs, but small businesses couldn’t keep their staff, and retrenchment was pretty “unobtrusive”.

Construction company is suffering from poor economic conditions, and Group Five is struggling to keep its 3,500 workers in service.

However, this is just the tip of the iceberg, and if the scale does not swing positively, economists provide a greater dark time for workers in the country.</
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It would take the ANC a thousand years to pay off debt if they were able to repay R100 per second

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The state’s ability to pay off its debt seems almost impossible. According to Center for Development and Enterprise (CDE) spokeswoman Ann Bernstein, it would take the state 1,000 years to settle its debt if they were able to repay R100 per second.

The gap between income and expenditure since 2009 is the main reason for the enormous debt burden.

The spokesman said some state entities must be closed down because of the inability to be managed economically.

Bernstein added that the government should show the necessary leadership to bring about change, but experts say the unions will not allow people to be fired because too much has been employed.

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Humour has it that  ANC regime can reduce SA’s  debt burden by increasing VAT to 20% – nobody is keeping pace with the fact that corruption are the cause of state debt

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The government should increase the VAT rate by at least 5% to reduce the debt burden in the provincial roads’ maintenance account which is now six times higher than the province’s expenditure.

Reports indicate that the South African roads, which are in a dire state, are now desperately seeking funds since there is was already a backlog of R197bn in 2013 to more than R400bn.

The figures are the logical conclusion that is made by experts and with very bad humour that this  problem can be solved by increasing VAT to 19% or 20%, but the problem may escalate if the funds end up in corrupt hands.

-Read the original article in Afrikaans on Vryburger

This report does not necessarily reflects the opinion of SA-news.

 

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Malema is thumped with debt mounting to nearly R1 million

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With the ruling in the High Court that the Malema group should pay R500,000 to former Minister Trevor Manual, the debt burden becomes almost R1 million to be paid.

The EFF’s appeal  has been turned down, and the civil rights organization must receive R200,000 for court fees, while  another amount has yet to be determined for the Karima Brown case.

The Malema Group does not have such money, and will probably now try to get relief in the Constitutional Court.

Whether the financial crisis is going to temper the Malema rulings is generally questionable and there is suspicion that some money will be found before anyone decides to have an attachment order served on the group’s property.

-Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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