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A bailout by any other name… Taxpayers to foot the Eskom bill again

General 8 months ago

Noises from Cosatu regarding the use of government pension funds to rescue the ailing national power utility would essentially amount to just another bailout from taxpayers, since they’re the ones who would have to foot the bill to reimburse the funds should Eskom continue on its current path.


11 Feb 2020
PREMIUM!
A bailout by any other name… Taxpayers to foot the Eskom bill again

A general view of Medupi Power Station on January 1, 2015. The station, previously called Project Alpha and Charlie, is a new dry-cooled coal fired power station being built by Eskom. When completed it will be the largest dry-cooled fired power station in the world. (Photo by Gallo Images / Mail & Guardian / Madelene Cronjé)

The Congress of South African Trade Unions’ (Cosatu) proposal to rescue Eskom using government pensions is simply a government bailout in disguise, as eventually taxpayers would be the ones bearing the brunt should Eskom fail to right the ship. Cosatu proposed to cut the power utility’s R450 billion debt by R250 billion, by getting aid from the Industrial Development Corporation (IDC), the Development Bank of Southern Africa, and the Public Investment Corporation (PIC). This would be done through the establishment of a special purpose finance vehicle, and could also prevent potential job losses at the power utility, the federation said....

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