Posts tagged with 'debt'

 

Bankrupt Eskom pleads for another government bailout as debt climbs beyond R450bn

Posted on Leave a comment

The power utility’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

Eskom CEO and board chairperson Jabu Mabuza said the power utility’s debt levels have reached the ceiling.

Eskom’s debt is reaching levels beyond R450 billion and Mabuza was in Parliament on Tuesday asking government for more money.

He said the power utility has not done enough to generate more revenue.

The acting CEO also admitted that Eskom was borrowing money to pay off its debt.

“Our revenue over the past 10 years, increasingly so over the last five years, has actually been flat to about 1% per year. On the other side, we’ve had a ballooning debt that we have not been able to collect which has totalled to R38 billion.”

Mabuza said the only function Eskom could control was its own expenses.

Finance Minister Tito Mboweni tabled a bill before the National Assembly i
Continue reading…

Enjoyed this post? Share it!

 
 

It would take the ANC a thousand years to pay off debt if they were able to repay R100 per second

Posted on Leave a comment

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.

Continue reading…

Enjoyed this post? Share it!

 
 

Parasite SEO Eskom, paralysing SA as the country is running out of money; unless considered action is taken, not just talk – South Africa remains standing at the brink of destruction

Posted on Leave a comment

When Finance Minister Tito Mboweni on Tuesday told MPs government would have to review its funding requirements, he put into financial jargon that, actually, South Africa’s running out of money. And Eskom is to blame, in the main.

Bluntly put, Tuesday’s Special Appropriation Bill is scraping together R59-billion extra for Eskom — that’s in addition to the R23-billion a year already announced in February’s Budget — to ensure the power utility keeps its lights on.

The bailout timing is crucial — a week to the day before Eskom releases its financial results. Twice delayed already, it’s now on public record the power utility wasn’t a going concern; effectively bankrupt, it can’t meet its obligations under its own steam. The Special Appropriation Bill’s proposed R59-billion bailout over two years has ensured the auditors, on the back of such an official guarantee, can now sign off on the Eskom financials.

“Eskom’s funding pl
Continue reading…

Enjoyed this post? Share it!

 
 

Leech entity Eskom, is holding the ANC hostage and demands funds or else the whole of SA will suffer without power

Posted on Leave a comment

If there is no funding, there will be no change, and the ANC regime will be guilty party because he made the appointments in the power utility’s senior posts.

This is the opinion of a political analyst after Finance Minister Tito Mboweni announced that Eskom needed R59bn to remain operational.

The minister announced in Parliament what needs to be done to support the struggling Eskom, saying the amount of R59bn is needed.

This means that the ANC government has to transfer R26 billion this year, and R33 billion in the financial year to the “leech” entity.

The big argument is still being used to make Eskom too strong in its evil, by saying if it is not done, there will be no power in the country’s analysts.

Experts say Eskom can say they need R30bn in three years, and if not, there are no lights.

-Vryburger / 2019-07-24

Continue reading…

Enjoyed this post? Share it!

 
 

State Treasury plundering continues – your tax money will fund Eskom with a further R59bn

Posted on Leave a comment

Eskom will receive a further R59bn bailout over two years from the government to keep the bankrupt power provider standing.

This follows the R69 billion already approved for a three-year period. Eskom’s debt currently amounts to R440bn and is considered the biggest risk to the South African economy.

How much money is still to be deposited in the entity is not known, but economic experts agree that Eskom will never get rid of the debt itself.

-Vryburger / 2019-07-23
This report does not necessarily reflects the opinion of SA-news.

Continue reading…

Enjoyed this post? Share it!

 
 

ANC sued by car rental company for failing to pay R5.7 million for 595 cars

Posted on Leave a comment

An Ekurhuleni-based car rental company is suing the ANC for more than R5.7 million, including interest, after the governing party failed to pay for the 595 motor vehicles it rented ahead of its Nasrec conference, held in December 2017.

Sizwe Car Rental, based in Isando, east of Johannesburg, applied to the Pretoria High Court earlier this month to have an order for judgment issued against Luthuli House for rental fees covering the period between August 2017 and July 2018.

The vehicles were rented from airports and motor depots countrywide and invoices were issued for them.

The ANC has until Wednesday to inform the court whether it disputes the claim and intends to defend it.

Judgment, as has been claimed, may be given against the party without further notice if it fails to comply with the court deadline.

Sizwe, which has a 24-year track record in the rental industry, said it had repeatedly sent invoices to the ANC in respect of eac
Continue reading…

Enjoyed this post? Share it!

 
 

SABC is going down! – Bankrupt ANC regime’s mouthpiece is sinking in debt – SABC shut down offices and retrenches 37% of its staff

Posted on Leave a comment

The bankrupt mouthpiece of the ANC, the SABC, plans to close 5 offices and dismiss 37% of their staff.

This includes 19 general managers who emphasize the fact that top-level government agencies are overloaded with incompetent, incompetent and incapacitated cadres.

If the SABC does not receive further funding from the state, they may end up in the (lucky) position that the station should close.

Meanwhile, the Minister of Communications and the management of the SABC are at a disadvantage around posts.

-Read the original article in Afrikaans on Vryburger / 2019-7-15
This report does not necessarily reflects the opinion of SA-news.

Continue reading…

Enjoyed this post? Share it!

 
 

SA faces rating crisis due to ANC-controlled Eskom’s gross debt of more than R440bn – How will Ramaphosa overcome this problem without abusing public funds?

Posted on Leave a comment

Despite the R230 billion bailout the ANC president promised to Eskom over the next ten years, they are now asking the government for further assistance.

At this stage, it appears that the government is going to trade Eskom’s debt for government bonds or through the creation of a special account.

According to the Treasury, the problem at Eskom is “big and complex” which leads to the country’s rating crisis. President Ramaphosa has on several occasions tried to appease the rating agencies with a “workable” plan without abusing public funds.

Eskom’s debt at the end of March amounted to R440 billion, and considering that the country’s total gross domestic product amounted to $ 366 billion in 2018, it shows how serious the crisis is.

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

Continue reading…

Enjoyed this post? Share it!

 
 

ANC-managed Victor Khanye municipality apparently owes more than R100m to water, and about R46m to electricity – residents now demand to know who are the culprits stealing all the money

Posted on Leave a comment

“We all pay our municipal bills regularly, who are stealing all the money”, is the question now asked by Delmas and local residents after it became known that millions of rand are in arrears on water and electricity.

The Victor Khanye municipality, which includes Delmas, apparently owes more than R100m to water, and about R46m to electricity.

This explains why residents demands to know where the money goes, and who might steal it while the residents are the victims.

Sundra, Rietkol and Eloff are also classified under the municipality, and are currently struggling because water supply is limited due to payment default.

However, financial experts say the Rand Water Council is equally guilty because they had to cut off the water with the first month’s account not paid by the municipality, or have given at least 24 hours notice that it would be cut off as payment made immediately.

They say this is also the reason why
Continue reading…

Enjoyed this post? Share it!

 
 

Zim government paid $10 million to Eskom to clear debt, receive power import after country left in the dark for up to 16 hours a day without power

Posted on Leave a comment

HARARE – Zimbabwe’s energy minister said the country had made a significant payment to Eskom to try to clear its debt and receive power imports from South Africa.

This comes amid heightened load shedding, that has seen most areas of the country going for up to 16 hours a day without power.

Energy Minister Fortune Chasi said Zimbabwe had paid $10 million to Eskom.

He said negotiations were under way to get 400 megawatts of power from South Africa.

Zimbabwe was not able to import much power from South Africa and Mozambique, because reportedly to owes both countries more than $70 million.

Zimbabwe has been experiencing stage 2 load-shedding, lasting for up to 16 hours a day, due to a technical fault at Hwange Thermal Power Station.

The power cuts are affecting businesses and undermining hopes for economic recovery.

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

Continue reading…

Enjoyed this post? Share it!

 
 

Employees of thirty municipalities may not receive salaries due to a shortage of funds – caused by lack of skill of councils and mismanagement of funds

Posted on Leave a comment

It appears that thirty municipalities do not have enough funds to pay their workers at the end of June.

This causes medical aid, pension contributions and other policies to fall in arrears and workers are at risk of discontinuing benefits from providers.

The latest report shows that municipalities struggle with debt over billions of rand’s and that only a small percentage of the councils received a clean audit report caused by incompetent councils and mismanagement of funds.

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

Continue reading…

Enjoyed this post? Share it!

 
 

How do you explain it? Only 18 of the 257 municipalities in South Africa are functionally correct

Posted on Leave a comment

The Auditor-General, Kimi Makwetu, pointed out the big sore in the economy of the country.

In his latest report, he shows that politicians and officials simply ignore his office’s recommendations.

The other truth that emerges is that municipal councils do not have the necessary skills to handle finance.

Only 18 of the 257 municipalities in the country received clean audits, a worsening of the 33 who received clean reports in 2015 – 2016.

Almost 33% of the councils spend more than they bring in which is a total debt of R5.8bn. Unauthorized R1.3 billion is water under the bridge that will never be recovered.

North West, Limpopo and the Free State have no municipality that received a clean audit. Then add the R9.12bn debt to Eskom and R5.85bn to the Water Council by councils then paint a pale picture of the state of the country’s municipalities.

Then, in the 2017-18 financial year, 18% of the Councils did not
Continue reading…

Enjoyed this post? Share it!