Eskom accounts show R3bn in irregular expenditure
Revenue rose 8% but profit plunged at the scandal-plagued power utility
The postponement of Eskom's financial results was triggered by the firm's auditors raising a qualified audit opinion on the accounts. The utility had to postpone the presentation until such time as it was able to sort out the matter, acting chairman Zethembe Khoza said on Wednesday. "Today as we stand here we are comfortable that the qualified audit did not materially impact Eskom," Khoza said at the utility's head office. Eskom's accounts showed the utility incurred a R3bn irregular expenditure bill, which may have triggered some of the covenants on Eskom's debt. The results announcement was pushed back by a week while Eskom engaged in negotiations with some of its lenders, notably the Development Bank of Southern Africa (DBSA) and US lender Citibank. Revenue in the year ended March rose 7.9% to R177bn, while profit dropped 83% to R888m. Khoza said the utility's financial performance and operational standing was continuing to improve. The utility has been plagued by allegations ...
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