South Africa’s state electricity supply utility, Eskom, has been destroyed by incompetence, affirmative action and consumer non-payment, that it is now “technically insolvent,” has a debt which is 15 percent of the national sovereign debt,” and will “cease to exist at [the] current trajectory by April 2019,” a government report has revealed.
According to the document, revealed by the Indian-origin Minister of Public Enterprises Pravin Gordhan at a press conference in Cape Town, the high levels of debt at ESKOM originate with the sprawling black townships in that country who all get “free” electricity supplied to them by the state. This debt now amounts to 15 percent of the sovereign debt and ESKOM’s “default risk threaten[s] the economy.”
According to the paper, the cash generated from sales does not cover operating and debt servicing costs, and the “escalation of municipality and Soweto debt (R28 billion) [is] growing at R1 billion a month.”
In addition, the typically African “jobs free for all” process and affirmative action has seen the number of employees at Eskom swell from 32,000 in 2007 to 48,000 in 2018, with the “associated cost growing from R9.5 billion to R29.5 billion.”
The report goes on to reveal the staggering levels of incompetence which mark the company—which, when started and ran by the country’s previous white rulers, was a world-leading enterprise—but of course does not say that they are due exclusively to “black empowerment” and “affirmative action.”
According to the report, “essential mid-life refurbishments” to the ESKOM infrastructure have simply “not [been] implemented,” and there has been “poor quality of maintenance due to poor workmanship,” with “40 percent of plant breakdowns due to human error.”
In addition, there is an “ongoing coal shortage due to poor management and lack of investments in mins, and a “significant loss of critical skills”—the latter being a nod to the fact that all the previous white employees have been driven out thanks to anti-white racism disguised as “affirmative action.”
All of this has, Gordhan said, meant that “South Africans needed 30 000 mw for cooking and general living and we only have 27 000 mw available.”
“Good people were forced out and others couldn’t work in a toxic environment anymore. Engineers left ESKOM for the Philippines and Indonesia because they couldn’t take it anymore,” Gordhan added.
The government will have little option other than to bail out ESKOM once again, but it is an intractable problem which will sooner, rather than later, overwhelm the nation’s financial resources, as bailouts cannot carry on indefinitely.
There is also no practical solution available on the operational front either, because the utility could only be saved by returning it to white management and staffing, and by cutting off all the millions of blacks who are sponging off the “free” electricity being supplied to them.
Needless to say, neither of these steps are even under consideration, and so the problem will continue on until the state’s resources are utterly depleted, and the entire system collapses into typical Third World anarchy.
This is the inevitable fate of all First World societies which allow themselves to be taken over the Third World.
* South Africa has an average IQ of 77, a fact which race-denying liberals ignore—and are then at a loss to explain why South Africa is collapsing.