financial losses | Radio 94.7 FM

Billions and billions have been thrown at The South African Airways (SAA), but the airline don’t have much to show for it. It’s hard to recall a time when the limpest of all our state-owned entities was successful on its own two feet. It has a history of relying on fiscal interventions, needing contributions from both private firms and the taxpayer just to stay airborne. Over the last 20 years, their borrowing has been obscene, merely a few days ago the board has requested yet another additional R4 billion to stay afloat this financial year.

According to a SAA spokesperson the company requested the R4 billion bailout as it has been operating at a loss since 2011. The entity needs has approximately R450 million a month to keep operations running. The airline’s generated revenue of R30.4bn in 2016-17 while operating costs amounted to R30.9bn. Finance costs totalled R835m and the operating loss was R533m. The losses have continued into
Continue reading…

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
Continue reading…