JOHANNESBURG - The DA said on Tuesday that financial losses reported by Eskom were the result of years of corruption and mismanagement, leaving the power utility in its worst financial state in history.
Eskom on Tuesday announced a whopping R20.7 billion net loss after tax for the financial year ended 31 March, up from R2.3 billion the previous year, the biggest financial loss for corporate South Africa in years.
In what was described as a perfect storm, Eskom chairperson and interim chief executive Jabu Mabuza said the losses for this financial year were not a reflection of the outgoing chief executive Phakamani Hadebe's performance, but rather a combination of various unavoidable factors.
Natasha Mazzone, DA spokesperson on public enterprises, said other worrying trends include the increase in municipal debt from R13.6 billion to R19.9 billion, adding that things were going from bad to worse at the utility.
"Eskom's financial trajectory is not sustainable. South Africa cannot afford a recurrence of load shedding, as we stare down the slow collapse of the entity. This will have irreparable consequences for the economy and ordinary citizens," Mazzone said.