Eskom posts FY loss of R2.3bn, irregular expenditure at R19bn

Power utility Eskom released its full-year results today reporting a net-loss of R2.3 billion from a profit of R0.9 billion previously driven by a decline in sales of 0.9%. Irregular expenditure in the meantime has ballooned to over R19 billion from R3 billion dating back to 2012. Company's Chair, Jabu Mabuza has suggested that it may be more than R19 billion. Meanwhile Eskom's wage bill is also set to increase following the most recently tabled a three-year deal with increases of about 7 percent annually, compared with the current inflation rate of 4.6 percent. The current Eskom board as only been in office for 69 days and says that the damage to the company will not be reversed over night. Calib Cassim, Chief Financial Officer of Eskom joined Business Day TV on the line for a closer look at the detail behind the numbers.