The Democratic Alliance (DA) is deeply concerned by the release of Eskom’s long-overdue financial statements for the 2023/24 financial year—a full nine months late. Despite receiving a staggering R76 billion bailout from the government, Eskom posted a pre-tax loss of R25 billion, which ballooned to R55 billion after tax.
Of particular concern, is the audit report which notes that there is “material uncertainty relating to Eskom’s ability to continue as a going concern.” While some might suggest that this highlights the urgent need for massive tariff increases, the reality is that it is Eskom’s inability to do the bare minimum in terms of financial management, such as producing its annual financial statements on time!
The exorbitant electricity tariff hikes that will plunge millions of vulnerable South Africans into energy poverty would be unnecessary if Eskom instead addressed operational inefficiencies and cost controls.
Last month, during an oversight visit to Eskom’s crumbling residential complex in Mpumalanga, the DA uncovered yet another example of the entity’s reckless mismanagement. Eskom wasted R840 million of public funds on an abandoned project. This kind of wasteful expenditure is unacceptable, particularly when the utility is simultaneously lobbying NERSA for a tariff hike that could see electricity costs skyrocket by 40%.
Eskom’s ongoing mismanagement is a slap in the face to hardworking South Africans who are already battling the rising cost of living. The DA will not stand by while taxpayers and consumers are made to bear the brunt of Eskom’s failures. We reiterate our call for urgent reforms at Eskom, including opening the energy market to independent power producers, increasing transparency, and holding those responsible for financial mismanagement accountable.
South Africans deserve a reliable, affordable energy supply—not an endless cycle of bailouts, mismanagement, and rising tariffs. The DA will continue to fight for accountability and sustainable solutions.