President Cyril Ramaphosa told the Financial Times Africa Summit in London on Monday afternoon that the SA government was on the verge of announcing new ideas on how to deal with struggling energy utility Eskom’s crippling debt, which currently sits at an estimated R440 billion and rising.
The president did not hide Eskom’s woes from the world.
“One of the greatest challenges to our economy is Eskom, which has huge debt, liquidity problems, and operational challenges. We have embarked on a process to strengthen governance, cut costs, improve revenue collection and increase energy availability,” Ramaphosa said, during his opening address at the summit.
He opened up at the Summit about the toll corruption has taken on Eskom’s bottom line.
“A lot of money was siphoned out of state coffers through corrupt means. Some of those [operations] were sophisticated. Some of those included blue-chip companies of great world reputation… that is the shocking part,” he said.
Before this, the president had addressed the issue of Eskom’s turnaround plan while answering questions at the National Council of Provinces (NCoP) last week.
The president said government would now “appoint a CEO, add to and augment the board, deal with the debt, deal with the operational aspects and the technical aspects, and deal with the challenge of non-payment”.
(Compiled by Daniel Friedman.)