Posts tagged with 'debt'

 

SABC financial crisis: National broadcaster faces total blackout

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With uncertainty over whether the SABC will be granted a government bailout, there are now fears that the broadcaster could be forced off air.

Things are looking grim as far as the South African Broadcasting Corporation (SABC) is concerned, with fears that the national broadcaster is heading to a complete blackout.

Long-standing financial strife in the SABC has worsened in 2019, with recent reports suggesting that the broadcaster may not be able to meet one of its most basic obligations at the end of June – paying its employees’ salaries.

The latest report, from the City Press, paints an even darker picture, suggesting that the SABC could be forced off air completely.

In an effort to seek relief from its financial crisis, the national broadcaster met with Minister of Communications Stella Ndabeni-Abrahams and, according to the publication, it was stated in the meeting that a complete blackout was inevitable if the SABC does not receiv
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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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SABC a sinking ship in a tide of debt – Need R3.2bn bailout to stay afloat

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Faced with an unenviable choice last month – either cough up to service its eight-figure municipality account, or settle the salary bill, the SABC took the high road and paid its staff.

And while the lights are still on in Auckland Park, for now, anyway, the broadcaster is desperately hoping a R3.2bn government guarantee will entice commercial banks to provide the loans it needs to stay afloat.

“I’m not sure how we are going to pay for salaries come end of June,” SABC board chair Bongumusa Makhathini told the Sunday Times this week. “We have also not maintained any of our infrastructure and a communication blackout is imminent. We anticipated Day Zero in March, but we have managed to stay on air until now.” The SABC will meet with the municipality this week to discuss its debt.

The financial position of the SABC has been worsening over the last nine months and the public broadcaster is at the mercy of its creditors as it awaits a
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Eskom ticking time bomb! – National power utility managed by ANC-regime, debt jumps to nearly R500-billion and is currently the biggest threat to the SA’s economy

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Embattled South African state power utility Eskom’s debt burden, described by Goldman Sachs Group as the biggest threat to the nation’s economy, has burgeoned, compounding the difficulty the government faces in formulating a turnaround plan.

The company’s debt is approaching R500-billion, according to data compiled by Bloomberg from public records, including bonds and issued loans, up from about R370-billion a year ago. While the utility declined to comment on the current number, its CEO, Phakamani Hadebe, last month put total debt at about R450-billion.

Eskom hasn’t been selling enough power to cover its operating costs and interest payments, and has been forced to implement rotating blackouts over the past few years to prevent a collapse of the national grid as its fleet of ageing and poorly maintained plants struggled to keep pace with demand.

President Cyril Ramaphosa announced plans earlier this year to split the company into three
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Widespread corruption and mismanagement are the order of the day at KZN municipality – Eskom debt amounts to nearly R50 million – Municipalities under the control of the ANC are folding, one after another

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The ANC’s “policy” to make the country ungovernable is producing vigorous fruit.

The Abuqulusi municipality (Vryheid) owes Eskom just short of R50 million. Widespread corruption and mismanagement caused the council to be placed under administration.

Suddenly, the Natal Department of Co-operative Awakened Government and Traditional Affairs and stated that they were “stunned” about the state of the municipality.

Read the original article in Afrikaans on Die Vryburger

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

 

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Economist says Zuma government cost taxpayers about R470bn – What a waste of good money!

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Nedbank chief economist Dennis Dykes says the Zuma regime has cost South Africa R470bn.

Dennis Dykes says they have done a thorough calculation that is South Africa’s loss due to corruption, maladministration and distorted policies in Jacob Zuma’s second term.

He says there was an estimated loss of R140bn due to taxes lost and now having an impact on the economy.

He also points out that government debt would also have been 49% less, amounting to R250 billion.

The amount lost in the latter half of Zuma’s regime is greater than Eskom’s total debt burden.

In response to the interview that appeared in Business Day, a businessman from Pretoria was merely saying, “Zuma, you bastard.”

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

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SA’s largest township owes Eskom R17 billion – Soweto residents respond: Hell no, we won’t pay for electricity!

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City Press visits Soweto and asks residents why they don’t pay for their electricity and how they could help Eskom to recoup the R17 billion owed by the people who live in SA’s largest township.

On Wednesday morning, as load shedding hit the township of 1.3 million residents, small businesses were losing money, and children had been sent home by their teachers, who said they couldn’t teach in a blackout.

While some people City Press spoke to paid their electricity bills and knew that their nonpaying neighbours were contributing to the crisis, others were steadfast in their refusal to pay for the power they used.

I pay because we have to

Sibongile Nyathi (40), who has been selling kota in Rockville for seven years, says she pays her electricity bills because, if she doesn’t, her small business will suffer.

“I can’t live without electricity, so it is important for me to pay. I am encouraging people of Soweto to also pay f
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Soweto owes ESKOM R 17 billion, half of the total national debt – Just cut their bloody electricity to this township!

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ESKOM is desperately trying to recoup money owed by municipalities – Soweto, in particular, is making that task all the more difficult.

ESKOM, South Africa’s national electricity provider, had an exceptionally shocking year in 2018. Financial losses reached dismal new depths. Irregularities, both fiscally and operationally, left the state owned enterprise floundering in the doldrums of gross incompetence. Dubious coal shortages, failed maintenance plans, industrial action and the lingering stench of corruption only added to ESKOM’s woes.

ESSKOM looks to recoup its losses:

Inevitably, ESKOM’s problems become the problems of South African citizens. The much-loathed load sheddingschedule made an ominous return. This year, the knock-on effects of ineptitude will be felt the hardest, as the power utility looks to increase the cost of electricity by at least 15%.
The tariff increase is an attempt to rebuff financial failings – to incre
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Eskom’s prior request for tariff hike slammed: Eskom’s stage 4 load shedding is a direct attempt to sabotage, and blackmail SA – Ordinary citizens are becoming the scapegoat to foot the bill of its complete and utter failures and lack of planning

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The South African Communist Party says Eskom’s management is rolling out massive blackouts in an attempt to blackmail South Africans to accept privatisation of the power utility.

Eskom resumed with loadshedding for the first time this year on Sunday.

Power cuts continued yesterday and Tuesday after a failure of generating units.

“The management of Eskom, in the manner that they are rolling out these blackouts, is trying to blackmail us so we must accept whatever should befall Eskom. We should not be blackmailed into that. That’s why we believe that these blackouts can be avoided,” SACP first deputy general secretary Solly Mapaila stated.

Mapaila said one of reasons given by Eskom for load shedding was low stocks of diesel.

“Why can’t they procure enough diesel on time? It is all of those things that I think are just unacceptable. The reasons why there were blackouts and so forth were issues of leadership incompetence. W
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A tale of two (broken) cities – Mahikeng, the former pride of North West for its cleanliness and progressive policies, is now overrun with potholes, refuse and debt thanks to the ANC-regime

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Mahikeng, the former pride of North West for its cleanliness and progressive policies, is now overrun with potholes, refuse and debt. Driving is a gamble and drinking tap water is an extreme sport. Mthatha is much the same.

MAHIKENG

A song cut from one of motswako rapper Mo’ Molemi’s albums could provide the best evidence of just how long Mahikeng’s residents have endured driving on potholed streets.

The track Maspala (municipality) was supposed to have been included on the album Motsamai seven years ago.

In it, Molemi sings in Setswana: “Kere somebody thiba dipotholes, kara yame ya tlola every time I am on the road. Ke a go kopa maspala thiba di pothole; go konega rim every time I go home.”

Loosely translated, it says: “I say somebody fix the potholes; my car bounces every time I’m on the road. I beg of you municipality fix the potholes; rims get damaged every time I go home.”

For the past few weeks, Maspala
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Soweto owes Eskom R17 billion, half of the total national debt – Still the lights or on! But if citizens residing in towns do not pay their municipality bill the electricity gets disconnected without hesitation

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How is Eskom going to increase its financial yield while still struggling to retrieve the R34 billion it is currently owed by defaulting municipalities?

Eskom is desperately trying to recoup money owed by municipalities – Soweto, in particular, is making that task all the more difficult.

Eskom, South Africa’s national electricity provider, had an exceptionally shocking year in 2018. Financial losses reached dismal new depths. Irregularities, both fiscally and operationally, left the state owned enterprise floundering in the doldrums of gross incompetence. Dubious coal shortages, failed maintenance plans, industrial action and the lingering stench of corruption only added to Eskom’s woes.

Eskom looks to recoup its losses
Inevitably, Eskom’s problems become the problems of South African citizens. The much-loathed load shedding schedule made an ominous return. This year, the knock-on effects of ineptitude will be felt the hardest, as
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South Africa Considers Handouts To Help Zimbabwe With Trouble Caused By… Handouts!

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The spiraling economic meltdown in Zimbabwe has prompted South African authorities to think about extending short-term credit to Harare and helping it to write off a $7.4-billion external debt.

In an interview with the Daily Maverick newspaper, South African Finance Minister Tito Mboweni said the two governments were discussing ways to settle Zimbabwe’s debt to the IMF, the World Bank and the Paris Club.

The sides were also weighing up the possibility of extending an existing credit facility which Zimbabwe had with the South African Reserve Bank.

Zimbabwe had previously provided collateral for the loan in the form of its holding of SA Land Bank bills, the minister said, noting the country had always repaid its loans under that facility in the past.

Experts say Harare is clearly desperate for a bailout from South Africa and/or any of its other allies to resolve an economic crisis which is slipping out of control.

Thousands of Zimb
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