Eskom mum on job losses as irregular expenditure balloons
Eskom is remaining tightlipped over reports of imminent job cuts at the cash-strapped power utility.
The power utility announced its annual results at its Megawatt Park headquarters in Johannesburg on Monday.
Chairperson Jabu Mabuza announced that irregular expenditure had grown to over R19 billion dating back to 2012.
It also suffered a net loss of R2.3 billion in 2018.
“In our engagements, as the board and management, we have reached a stage where the time has come to review our entire operational model, looking at our balance sheet capitalization, and looking at where we can cut costs and optimize revenue.
“Once we are at a point where we have settled, it would be inappropriate for the affected employees of Eskom to hear through this type of forum to say this is our thinking,” Mabuza told the media.
Eskom has been locked in wage negotiations for close to a month with the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (Numsa) and Solidarity.
The power utility has offered its employees 7,5% wage increase, which does not include a bonus.
NUM has unanimously rejected the offer by Eskom and have threatened to wage war against the power utility.
Eskom’s irregular expenditure has substantially increased from last year’s financial results.
“We reported at the year ended in March 2017 irregular expenditure of R3 billion, today we are reporting irregular expenditure of R19 billion. This R19 billion is primarily a function of us having gone back as far as 2012, it has been a function of us shaking this cupboard so hard that all skeletons are coming out,” Mabuza said.
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