SABC News - Necsa under pressure to turn finances around :Tuesday 25 October 2016

Necsa under pressure to turn finances around

Tuesday 25 October 2016 18:18

Bulelani Phillip

Necsa appeared before the Energy Portfolio Committee presenting its annual report for the past two financial years.

Necsa appeared before the Energy Portfolio Committee presenting its annual report for the past two financial years.(Supplied)

The South African Nuclear Energy Corporation (Necsa) says it is under pressure to turn its finances around.

The company says dwindling government grants and international competitors are impacting on its net profits.

Necsa appeared before the Energy Portfolio Committee presenting its annual report for the past two financial years.

The company failed to present its financials after a dispute with the Auditor General. However, Necsa recorded a net operating loss of R82 .6 million .

Chief Financial Officer at Necsa, Zakes Myeza says: "The operating loss is the key in terms of determining how operationally you are performing. Therefore based on that, the AG concluded that there is an issue we must work on in terms on the financial sustainability at Necsa."

The company has however received unqualified audit opinion for the past two financial years.

Necsa says the net loss was caused by revenues that are not able to cover operating losses and the company also says some of its investments on technology may take time to yield profits.

Necsa CEO Phumzile Tshelane says: "More than 65% of our revenue happens to come from products and services that we sell. So we are operating in an open market and competing with companies that are international in nature, global in nature so that’s brings in commercial risks."

Meanwhile, Necsa also moved to assure lawmakers about the planned nuclear build programme that will provide nine point six gigawatts of electricity.

The company says the country will not out-source its responsibilities to vendor countries.

Necsa Chairperson Kelvin Kemm says: "An image is often created in the press that somehow we are going to sign one cheque and send it to somebody and we're going to buy one nuclear reactor that'll arrive."

"All these assumptions are not accurate. The reactors will be built by South Africans in collaboration with one or more foreign companies when this is eventually decided."

Necsa says its role in the nuclear programme is likely to fuel development for the plants.


Click video below

Share this page: Printer friendly version
 
SABC ©