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<\/p>\nBy Kwanele Dhladhla<\/p>\n
The Eswatini Post and Telecommunications Corporation (EPTC) has recorded a worrying
\nfinancial downturn, posting a consolidated deficit of E96.7 million for the financial year ended
\nMarch 31, 2024, a sharp decline from the E13.2 million surplus achieved in the previous year.<\/p>\n
According to the recently released financial statements, which were highlighted by Auditor
\nGeneral Timothy Matsebula in the Compliance Audit Report, which was tabled in Parliament by
\nMinister of Finance Neal Rijkenberg on Thursday, the corporation also registered a separate
\ndeficit of E111.2 million in the same period, worsening from a deficit of E11.8 million in the
\n2023 financial year.<\/p>\n
Analysts warn that without urgent remedial measures, the downward trajectory could continue, threatening the Corporation\u2019s ability to meet its mandate and forcing
\ngovernment intervention through a possible bailout.<\/p>\n
EPTC management attributed the ballooning deficit to extraordinary costs and financial clean-up
\nprocesses. These included:
\n? Tax interests and penalties: E55.4 million
\n? Reclassification of write-offs: E37.2 million
\n? National Contact Centre intercompany provision: E26.6 million
\n? Towers write-off: E7.4 million
\n? Provision for uncompleted projects write-off: E32.2 million<\/p>\n
Management explained that these extraordinary adjustments were necessary to align financial
\nreporting standards but inevitably weighed heavily on the bottom line.<\/p>\n
Concerns were also raised regarding the Corporation\u2019s turnaround strategy, which was approved
\nby Cabinet in June 2023. While Cabinet endorsed the plan, it declined to provide the requested
\nfunding, directing EPTC instead to secure external financing for the strategy and for addressing
\nits pension deficit.<\/p>\n
Management confirmed that external funding has not yet been secured. However, certain
\nelements of the strategy have been initiated using dividends from EPTC\u2019s investment in MTN
\nEswatini. Notable progress includes:
\n? Modernisation of the core network (95 per cent complete)
\n? Deployment of broadband fibre reaching 15,000 homes
\n? Wireless last-mile rollout serving 6,555 customers
\n? Executive-level structural review to improve efficiency<\/p>\n
<\/p>\n
Despite these efforts, the pension fund underfunding remains unresolved, and broader
\noperational efficiency initiatives are incomplete due to lack of funding.<\/p>\n
Adding to the financial distress, the Corporation is grappling with a liquidity crunch. As at
\nMarch 31, 2024, current liabilities exceeded current assets by E23.3 million. Current liabilities
\nstood at E437.1 million, against current assets of E413.9 million.<\/p>\n
This imbalance reflects a poor liquidity ratio, exposing EPTC to risks of insolvency. The
\nCorporation may struggle to meet short-term obligations, settle long-term debts as they fall due,
\nand cover day-to-day operational costs.<\/p>\n
The financial statements paint a sobering picture for one of Eswatini\u2019s most critical state-owned
\nenterprises. Observers stress that unless a robust and well-funded turnaround strategy is
\nimplemented, EPTC\u2019s financial woes could deepen, undermining its ability to provide essential
\ntelecommunications services in an increasingly digital economy.<\/p>\n
Government may be compelled to step in with a bailout if the corporation\u2019s liquidity position
\ndeteriorates further. For now, stakeholders are calling on management to urgently pursue
\nalternative funding sources and accelerate implementation of cost-saving and revenue-boosting
\nmeasures.<\/p>\n
EPTC\u2019s struggle underscores the broader challenge facing state-owned enterprises in balancing
\ndevelopmental mandates with financial sustainability.<\/p>\n","protected":false},"excerpt":{"rendered":"By Kwanele Dhladhla The Eswatini Post and Telecommunications Corporation (EPTC) has recorded a worrying financial downturn, posting a…","protected":false},"author":1,"featured_media":3265,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[21,23],"tags":[46,55,73,82,58],"class_list":["post-3264","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-finance","tag-africa","tag-business","tag-eswatini","tag-finance","tag-national","cs-entry","cs-video-wrap"],"yoast_head":"\n