EDITORIAL: Transnet is whistling in the dark
Transnet seems pleased as Punch about its latest loan, but there is still lots of room for scepticism
12 September 2024 - 05:00
Transnet CEO Michelle Phillips says the rail and logistics state-owned entity is on track to recovery, but is it moving? The announcement last week of a R5bn loan from the New Development Bank (NDB, also known as the Brics bank) seemed to be calculated to inspire confidence. What it does do is add to a debt burden already standing at R130bn.
Questions again have to be asked about Transnet’s capacity to repay all these loans. Board chair Andile Sangqu said at the end of last year that cash flow from revenue was essentially being used to service debt...
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