Eskom's financial crisis drives power utility towards retrenchments - CNBC Africa

Eskom's financial crisis drives power utility towards retrenchments

Southern Africa

by Trust Matsilele 0

Eskom financial crisis drives power utility towards retrenchment. PHOTOS: Eskom

The move follows incessant financial woes that have rocked the power utility which is failing to keep the country’s lights on.

(READ MORE: S.Africa’s Eskom says begins nationwide rolling blackouts)

Tsholofelo Matona, Eskom’s chief executive warned over the company's bleak financial situation saying Eskom was facing a crisis.

Eskom’s spokesperson Andrew Etzinger was cited in some media reports saying the organisation had already announced the process by which employees can apply for voluntary separation packages.

“In exceptional circumstances we are hiring but we are, as far as possible, limiting the number of new employees,” Etzinger is quoted to have said.

In a separate development, the power utility has seen at least two of its employees being arrested in connection with fraud that could have resulted in the power utility losing billions of rand.

(READ MORE: Eskom woes worsen as group profits drop 24%)

"During a weekend sting operation two employees of the South African electricity public utility, Eskom, together with an accomplice, were arrested for fraud involving a potential loss of billions," spokesperson Captain Paul Ramaloko said in a statement.

The two were arrested after a two-month joint investigation.

The two are alleged to have been in contravention of the Electronic Communication and Transaction Act of 2002.

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