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Real Economy News in Real Time
R/€ = 16.37 Change: -0.07
R/$ = 14.37 Change: -0.04
Au 1414.97 $/oz Change: 30.89
Pt 811.00 $/oz Change: 7.41
 
 
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Necsa board states agency has dire finances

13th June 2019 BY: Rebecca Campbell
Creamer Media Senior Deputy Editor

The South African Nuclear Energy Corporation (Necsa) issued on Thursday a curt response to the press release issued the day before by the National Education, Health and Allied Workers Union. In its statement, the union alleged that the Necsa board was proposing to retrench 400 employees and perhaps sell some of its assets.

“The Board inherited a dire financial situation when it assumed office in December 2018, with cash flow shortfalls of hundreds of millions of rand and empty order books across divisions,” stated Necsa. This situation it blamed on policy uncertainty concerning the construction of new nuclear power plants for South Africa.

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As a result, the Necsa board had to hold talks with its shareholder, because “urgent decisions needed to be made”. (The shareholder being the State, represented by the Department of Energy, now under the Minister of Mineral Resources and Energy.)

It affirmed that it was perfectly correct for the board to first hold discussions with its shareholder. It would, however, also talk with all Necsa role players and stakeholders, “in accordance with the provisions of the law”. 

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EDITED BY: Creamer Media Reporter
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