Eskom’s existential crisis – CFO bares all to Yelland

CAPE TOWN — Unless Eskom gets the tariff hike they’re asking for, the power utility will have to ask government for another R83bn in three to five years’ time, says its new CFO, Calib Cassim. In the most revealing interview yet, Cassim admits to Chris Yelland, one of the country’s top energy journalists, that Eskom is currently “using one credit card to pay off another –unsustainable under any circumstances.” Municipal arrear debt amounts to R18bn, growing at about R450m per month, while Soweto arrear debt adds a further R17bn, growing at about R50m per month. In total, arrear debt is growing by R500m per month. From the horse’s mouth, these numbers. Here’s a Cassim quote that could either have you fast-tracking or cancelling your immigration plans, depending on the lenses you wear. “If we go down, we bring down the sovereign and the economy. For me, the best thing that has ever happened is the presidential task team, and the fact that we have the ear of the president who understands the urgency. He used the words “financial crisis” in his state-of-the-nation address, and this is the best way to describe where we are, hand-in-hand with our operational challenges.” - Chris Bateman