South Africa’s embattled power supplier, Eskom, is facing great financial and operational challenges which have left it with a $30 billion debt, Interim Executive Chairman and Acting Group Chief Executive, Jabu Mabuza, has said.“Eskom’s turnaround journey that seeks to stabilise, separate and grow the company in order to achieve long-term sustainability will take some time to achieve its objectives,” Mabuza told a media briefing on Thursday.
He added: “But we are encouraged by positive steps taken in stabilising governance and rooting out financial mismanagement, malfeasance and maladministration.
“This includes recovery of monies lost during the period of state capture. Lifestyle audits of executive senior managers have been completed.
“Eskom is working with all law enforcement agencies conducting major investigations into matters of fraud and corruption that affect the organisation.”
On his part, Eskom Group Chief Financial Officer, Calib Cassim, gave a full report on the entity’s financials highlighting that Eskom’s financial performance remained under pressure.
He indicated that cost savings alone could not resolve the current financial challenges and a migration towards a cost-reflective tariff remained imperative.
“We have lodged applications with the High Court to review the National Energy Regulator of South Africa (NERSA’s) recent revenue determinations,” he said.