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Eskom reportedly waste R840 Million on “useless” flats

eskom - Eskom reportedly waste R840 Million on "useless" flats

Eskom has been reported to have waste an enormous sum of cash in buying flats which was not used.

The Auditor-Normal of South Africa(AGSA) lately launched a report for the 2019/20 monetary yr. The report revealed that Eskom’s wasteful expenditure elevated from R538 million to R2.9 billion.

Out of the large quantity, flats had been bought  for the technicians who had been going to work at Kusile Energy Station when it was nonetheless being constructed.

Nevertheless, the station building was concluded earlier than the flats had been constructed.

GSA enterprise government Polani Sokombela mentioned: “That constructing has been impaired all the way down to zero, as a result of the place it’s sitting at present, it will be very troublesome to get tenants who could be prepared to remain there and pay.”

The AG’s Siyakhula Vilakazi mentioned the funds for the flats was R160m and the precise expenditure when the undertaking was stopped was round R840m.

“How the funds ballooned from R160m to R840m … it’s truly very troublesome to get credible solutions to that,” he mentioned.

“That constructing has been impaired all the way down to zero as a result of the place it’s sitting now it’s very troublesome to get tenants who could be prepared to pay market-related leases. It’s also not in a state or situation the place individuals can dwell in it,” mentioned Vilakazi.

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