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The South African state-owned electricity company, Eskom, is costing an average of US$55 million a month to the exchequer due to corruption. This has burdened the company with heavy debt. Because of that, the company is unable to produce enough power, leading to a severe power crisis
The South African state-owned electricity company, Eskom, is costing an average of US$55 million a month to the exchequer due to corruption. This has burdened the company with heavy debt. Because of that, the company is unable to produce enough power, leading to a severe power crisis.
In a remote interview with a parliamentary committee on public accounts, Andre de Ruyter, the ex-CEO of Eskom, who was ejected, confirmed his statements on the level of corruption at Eskom in a document he submitted. In a document he submitted to the committee, he maintained that one billion rands, which is equivalent to US$55 million, was being siphoned off from Eskom every month. This he said was a conservative estimate.
Eskom’s antiquated and poorly maintained power stations, according to government sources, are the major reason for the losses. The onset of the southern winter can lead to an increase in power demand and could further worsen the situation. Eskom now has a debt of 422- billion rand, equivalent to nearly US$23 billion. Over 80 percent of the electricity is generated from thermal sources.
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https://trendsnafrica.com/eskom-to-get-a-r254-billion-debt-relief/
A US$98 billion investment plan was approved by rich countries last year at COP27 as part of an agreement for a just transition to clean energy for South Africa. Analysts say that the transition to clean energy will take time and the country has to cope with the power crisis till then, which will have a huge bearing on its future economic growth.
