Treasury proposes additional R59bn for Eskom
Mboweni said the financial support would come at a significant cost to the fiscus and the South African taxpayers.
FINANCE Minister Tito Mboweni has proposed additional funding support of R59 billion over the next two financial years to help the embattled power utility, Eskom meet its financial obligations.
The Minister said this when he introduced the Special Appropriations Bill aimed at assisting Eskom with additional financial support during a sitting of the National Assembly on Tuesday.
“Although government has committed R23 billion to be allocated to Eskom over the next three years, Eskom’s funding plan is dependent on their ability to raise additional financing from the market, which in turn requires them to be a going concern,” Mboweni said.
You may be interested: Release of state-owned land to be prioritised
He said given the risks to the economy of the systemic failure if Eskom were to collapse, government is urgently working to stabilise the institution while developing a broad strategy for its future.
Mboweni said the financial support would come at a significant cost to the fiscus and the South African taxpayers.
“Eskom faces serious financial and operational challenges, which to a large extent were caused by governance challenges that are playing themselves out at the Zondo Commission. Therefore, without major changes to Eskom’s business model and financial assistance being provided by government, the company will be unable to meet its financial obligations for the 2019/ 20 financial year,” he said.
You can also sign up for news alerts on Telegram. Send us a Telegram message (not an SMS) with your name and surname (ONLY) to 060 532 5532.
Here’s where you can download Telegram on Android or Apple.
For more from Northglen News follow us on Facebook or Twitter. You can also follow us on Instagram
