Eskom’s irregular expenditure has ballooned to over R19 billion dating back to 2012.
This was among the more astonishing figures revealed by board chairperson Jabu Mabuza and other managers on Monday morning in unveiling the company’s latest financial results.
It went back to 2012 in its financials and found irregular and wasteful expenditure of R19bn.
Eskom suffered a net loss of R2.3 billion in 2018, compared with a R0.9bn profit the previous year, the state-owned power producer revealed at its financial results presentation on Monday.
CEO Phakamani Hadebe said the poor results were compounded by allegations of corruption and mismanagement, challenges of governance and negative investor sentiment.
The power utility said that its net cash from operations declined from R45.8bn to R37.6bn, as it struggled with leadership and operational challenges.
Eskom chair Mabuza also said there had been R19.6bn in irregular expenditure since 2012, with much of the irregular expenditure being reported in 2018.
“This was a result of us shaking the cupboard so hard that so many skeletons came tumbling down,” he said.
“The verification and cleaning up exercise resulted in a significant increase in the number of reported irregular expenditure in 2018 (from R3bn to R19.6bn), with many of the items reported arising in prior years. Where information was not readily available, alternative methods were used where practical to identify irregular expenditure,” the utility said.
— EWN Reporter (@ewnreporter) July 23, 2018