Eskom coal

Eskom’s financial results show R3bn in ‘irregular expenditure’ and an 83% profit loss

The energy firm has shed a load of their own

Eskom coal

The utility had delayed releasing their results by a week as they continued negotiations with both national and international lenders.

Eskom’s accounts showed they incurred a R3bn irregular expenditure bill, which may have triggered some of the covenants on Eskom’s debt.

The company are suffering in the public eye and on the balance sheets: The announcement has also shown what a precarious financial position the energy giants have mismanaged themselves in to.

Though their total revenue has risen to R177bn – an increase of 8% – their total profit has nosedived by 83%: They are down R888m from last year.

Read: Eskom extend borrowing as Chinese bank prop them up with R20bn loan

It has been a bruising 12 months for Eskom, who have been dogged by accusations of fraud and corruption. It is suspected that they have lost billions of rand to fraud and alleged questionable payments to the Trillian group.

Trillian has a strong political influence and they’ve been implicated in the #GuptaLeaks scandal. They carried out ZERO work for Eskom, yet still received nine-figure payments from the energy firm.

Acting Chairman Zethembe Khoza was bullish about Wednesday’s figures and maintained that the utility’s financial performance was actually on the up. He went on to say that audit did not ‘materially impact’ Eskom.

Read: Brown launching own inquiry into state capture at Eskom and with Brian Molefe

Meanwhile, Lynne Brown is clearly a big fan of ‘kicking them when they’re down’ – she’s launched two additional probes in Eskom’s conduct this week

She’s asked the Special Investigating Unit to look into all allegations of impropriety against Eskom over the past 10 years, as well as asking the newly appointed board of directors to conduct short-term investigations and report back.

Johnny Dladla is Eskom’s 6th acting Chief Executive in the last three years, and it was he who presented the results at a media briefing earlier today.