Wed, 13 Nov 2019

Eskom one step closer to R59bn bailout

News24
23 Oct 2019, 04:14 GMT+10

The National Assembly on Tuesday afternoon passed the Special Appropriations Bill aimed at giving financial assistance to Eskom, bringing the beleaguered power utility one step closer to a much-needed tranche of R59bn.

While the Democratic Alliance, the Economic Freedom Fighters, the African Christian Democratic Party, the United Democratic Movement and Freedom Front Plus objected to its passing, 200 votes in favour, 105 against and no abstentions were enough to get the controversial bill through.

The bill will now be referred to the National Council of Provinces.

Rumours of Eskom debt swap irresponsible - Treasury

No more blank cheques

African National Congress MP and former deputy minister of finance Sfiso Buthelezi told the National Assembly that Eskom must not be allowed to default on its debt, as this would lead to cross defaults.

Democratic Alliance MP Ashor Sarupen said the bill, in its present form, was a blank cheque for more of the same at Eskom and would diminish of oversight and accountability for public money. "It allows Eskom to continue to hold a gun to the heads of our citizens, our businesses and our government," Sarupen said.

Economic Freedom Fighters MP Floyd Shivambu said problems at Eskom ranged from financial constraints all the way to leadership and a restricted capacity to negotiate with suppliers and other businesses in the energy sector, particularly renewables. He was particularly critical of the appointment of board chair Jabu Mabuza as acting CEO, adding: "The bigger crisis Eskom is facing is the stabilisation of coal prices. Established coal suppliers are supplying to Eskom at a higher than market relevant price per ton."

Doomed if you do, doomed if you don't

Inkatha Freedom Party MP Mfakazeleni Buthelezi told the National Assembly that the party opted to support the special appropriation bill as the country would be "doomed if it did and doomed if it didn't."

Freedom Front Plus MP Wouter Wessels blamed the ruling party and said cadre deployment was behind looting and neglect at Eskom.

ACDP MP Steve Swart said: "A special ad hoc committee must be established to oversee Eskom to ensure that the conditions of this bailout are complied with."

UDM MP Nqabayomzi Kwankwa said governance weaknesses at Eskom had not been addressed and that there was no clear turnaround strategy for Eskom. He called for a concept document to define unbundling and allay fears of privatisation.

Sign up for Sudan News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!