Auditors question S.Africa’s Eskom’s ability to continue as a going concern

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By Reuters

JOHANNESBURG, Dec 23 (Reuters) – South African state power firm Eskom’s auditors Deloitte & Touche LLP have raised a material uncertainty relating to the utility’s ability to continue as a going concern, the company said on Friday while announcing its annual results.

Deloitte & Touche raised among other matters that there is “a material uncertainty relating to Eskom’s ability to continue as a going concern,” the utility said.

Eskom reported a 12.3 billion rand ($719 million) net loss in the year-ended March 2022, versus a 25 billion rand loss in the same period last year.

The utility also forecast a net loss of 20.1 billion rand in the 2023 financial year.

Gross debt and borrowings fell to 396.3 billion rand at the end of March versus 401.8 billion rand reported a year ago, Eskom said.

The announcement comes on the back of Chief Executive Officer Andre De Ruyter’s resignation from the top job earlier this month. De Ruyter has said a lack of political support had made his position “untenable”.