Thursday, August 27, 2009

Another day, another billion down the crapper.

Eskom loss ‘result of bad management’

This is the same story with each parastatal, government department, and city under ANC misrule. Viva ANC

CAPE TOWN - The “shocking” R9.7 billion loss posted by Eskom this week was the result of years of bad management, the Cape Chamber of Commerce said on Thursday.

In the five years before the blackouts started, Eskom made a profit of R33.5 billion, said chamber director Albert Schuitmaker.

Most of that money had gone to the government in taxes and dividends instead of being used to improve maintenance, train staff and preserve coal stocks. Now the picture was one of declining reserve margins of electricity, while stocks of coal were run down to the point where the country had been plunged into darkness.

“Eskom produced some great balance sheets, but it is now clear that they concealed more than they revealed,” he said. Some people were trying to blame the National Energy Regulator of South Africa (Nersa) for limiting electricity tariff increases in the boom years.

“But how could Nersa approve bigger price increases when Eskom profits were R9.458bn in 2007, R6.647bn in 2006, R7.786bn in 2005 (a 15-month financial year), R5.276bn in 2003 and R5.454bn in 2002?” he asked.

The chamber would like to believe Eskom had learned from the crisis, but there was reason for serious doubt.

2 Opinion(s):

Exzanian said...

Wow, that's a massive loss! And they can't blame it on the credit crisis. This one sits squarely on the doorstep on their own, ignorant, stupid incompetence.

Exzanian said...

Hey Logs, I see on News24 there are ambitious plans to generate electricity from cow manure. Chortle! There is also a reference to Zimbabwe's plan in 2005 to generate electricy from pig manure.
the stupidity is absolutely dazzling! We posted a R10 Billion loss, so what? no worries mate! We got another plan, soldier on!