Corruption behind Eskom's 800% loss – DA

Financial losses at Eskom is a result of years of "corruption and mismanagement," the Democratic Alliance said.

The DA on Tuesday issued a statement following Eskom's results announcement earlier in the afternoon. The power utility reported a loss of R20.7bn for the 2018/19 financial year, this is 800% higher than the R2.3bn reported in the previous financial year. Municpal debt also escalated to R19.9bn, up from R13.6bn reported last year.

"Clearly, things are going from bad to worse at the utility," DA MP Natasha Mazzone said in a statement.

"Eskom is a sinking ship, and judging from Public Enterprises Minister, Pravin Gordhan's announcement on Monday that the entity would appoint its current board Chairperson, Jabu Mabuza, as an interim Acting CEO, there is no permanent captain to steer the ship through this storm," she added.

Mazzone said that Mabuza's appointment as acting CEO while the search for a permanent CEO continues, places his independence into question. "Placing the responsibilities of two critical positions on one individual is a mammoth task and undoubtedly sets a person up for failure. This decision violates any attempt to establish good governance practices at Eskom," Mazzone said. "The current instability does not bode well for investor confidence or Eskom’s financial well-being."

Interim appointments at state-owned entities leads to uncertainty and instability, she added.

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