Posts tagged with 'financial crisis'

 

Pravin Gordhan says cash-strapped SAA may have no money for salaries this month

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Minister of Public Enterprises Pravin Gordhan has warned that, while two unions at SAA are demanding salary increases for members, the airline might not even be able to pay any salaries at the end of the month.

The minister was speaking at a Parliamentary briefing on Wednesday. The meeting was called for feedback on power utility Eskom, but Gordhan – who met with unions on Tuesday – also made some remarks about SA’s cash-strapped national airline.

The minister said the strike was worsening the airline’s financial crisis. “SAA doesn’t have enough cash to possibly even pay salaries at the end of the month,” he said. “Not only will people not get increases but they might not even get their salaries,” he added.

Members of the National Union of Metalworkers of SA and the SA Cabin Crew Association have been on strike since Friday over wages, proposed job cuts and the demand that more workers
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Eskom may be peddling its problems – now wants to sell some of its power plants to cut losses due to maintenance costs

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Eskom plans to sell off its power plants in order to get rid of the bigger problems in the industry.

Informed sources told Die Vryburger that Eskom wants to sell its power plants that require large maintenance costs and are guilty of the huge pollution in certain areas such as the Eastern Transvaal to private entrepreneurs.

Eskom’s financial crisis does not allow him to do proper maintenance and end the huge air pollution, and now it seems that he would prefer to sell such power plants.

Eskom has still focused on the possibility of nuclear power generation, but the bankrupt entity will not be able to raise the funds for it.

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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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SA economy in dire stress Mr Cyril! – No growth occurred and Gross Domestic Production shrunk by a shocking 3.2%

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Despite the great optimism surrounding Ramaphosa’s election as ANC president, there has been no growth in the domestic economy.

Rather, the decline can be notice after the latest figures where released. Gross Domestic Production weakened by a shocking 3.2% in the first quarter of 2019.

This is the biggest fall since the world wide financial crisis in 2009. The manufacturing sector fell by almost 9% but all sectors showed a downward growth. The Rand fell by 1.4% after the figures were announced, while banks dropped an average of 3.2% on the JSE.

All that has increased is the government’s 1.3% increase in expenses. Economists believe the figures could force the Reserve Bank to lower interest rates at their next meeting in June 2019.

The major reason for the “depression” in the economy is power outages and higher income taxes. A further worrying figure is the 26.4% drop in exports.

-Read the original article in
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China is holding the ‘switch’ in it’s hand, doing business with them is dangerous, with another Eskom crisis, China withheld the R7bn loan, they already own one Eskom plant, Load-shedding highly possible

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Well, this doesn’t look too clever. It’s reported that Eskom will be R7bn lighter this month, after its Chinese lenders raised their concerns.

South Africa could be set for another round of drama from Eskom, as the ailing power utility has reportedly failed to receive R7 billion in loan payments initially set to come from the Chinese Development Bank (CDB).

That’s according to City Press, who have reported that the creditors do not trust their promises over proposed maintenance work. It would be the second time in just over two weeks that one of Eskom’s promised loans failed to materialize after the Brics New Development Bank also did not part with their billions.

Why haven’t Eskom received the loan?
On Easter Friday, Finance Minister Tito Mboweni was forced to grant the power giants an emergency bailout in order to meet salary demands and diesel costs. It’s reported that the CDB has taken note of their actions
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SA is the most unequal country in the world – and according statistics, South-African’s are becoming poorer and poorer by the day, while the ANC-regime is stuffing their pockets by abusing the taxpayers hard earned money via corruption and looting

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The world is still unequal, and the gap between rich and the poor and between men and women is still vast.

The world’s rich are getting richer and the world’s poor are getting richer – except in sub-Saharan Africa where the poor are getting poorer.

Worldwide, the number of billionaires doubled since the 2008 financial crisis.

In 2018 a new world billionaire was created every 2 days.

Last year the super wealthy grew their billions collectively by $2.5bn a day, but billionaires and big corporations are paying lower taxes than they have in decades.

This is according to the latest Oxfam report due to be released on Monday in Johannesburg.

The organisation, founded internationally in 1942, is a nonprofit group of independent charity organisations focusing on the alleviation of global poverty.

According to the report, if the world’s richest and big corporations paid their fair share of taxes, the ga
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