The board of troubled state-owned oil company PetroSA has asked its holding company‚ the Central Energy Fund (CEF)‚ to place it under business rescue‚ raising questions over its status as a going concern.
PetroSA has suffered huge financial losses over the past three years‚ but it is unprecedented for a state-owned entity to ask to be placed under business rescue.
PetroSA has a projected loss of R2.2bn for the year to March 2017. This follows its record R14.6bn net operating loss in the 2014-15 financial year.
Despite these losses‚ PetroSA paid out large performance bonuses to its executives at the end of 2016‚ linked to the Ikhewzi project‚ responsible for a near R15bn impairment in financial 2014-15.
This story appeared in Business Day
PetroSA board in 'unprecedented' plea for business rescue
The board of troubled state-owned oil company PetroSA has asked its holding company‚ the Central Energy Fund (CEF)‚ to place it under business rescue‚ raising questions over its status as a going concern.
PetroSA has suffered huge financial losses over the past three years‚ but it is unprecedented for a state-owned entity to ask to be placed under business rescue.
PetroSA has a projected loss of R2.2bn for the year to March 2017. This follows its record R14.6bn net operating loss in the 2014-15 financial year.
Despite these losses‚ PetroSA paid out large performance bonuses to its executives at the end of 2016‚ linked to the Ikhewzi project‚ responsible for a near R15bn impairment in financial 2014-15.
This story appeared in Business Day