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Eskom wants R100bn from state to keep lights on

Turnaround strategy yet to be presented to the public.

Eskom says it needs a R100 billion bailout from the state to keep the lights on. This does not follow long after it received around R83 billion in guarantees. Carol Paton, reporter at Business Day, talks to Classic Business Breakfast with Moneyweb about the power utility’s financial woes. 

Read: How Eskom is hobbling the economy

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OLX

Way back in 2002 I said that even if the whole country gave up all its money to Eskom it still would not be sufficient.

President Ramaphosa, please do not borrow Eskom any more Tax payer money, it will sink the whole of South Africa with it.

Starting to look worse that SAA!

…sounds like the ANC Govt has created their own “Angola bush war” in terms of a national expense 😉

The previous regime capitulated in the early 90’s, due to lack of funds to continue the costly war.

I’ve completely forgotten how the past evil, racist regime got out of their financial sinkhole? (They started to make uneasy friends with others…)

After full junk-status in 2019, who will the ANC unwillingly befriend? China (again) or the IMF?

Sell 49% to privately owned companies and see how it will be turned around through propper managemnet and governing structures.

Our SOE are pulling the nation down!!

If there’s one position no sensible person should ever be in, it’s a minority shareholder in a lossmaking company, especially where the board members of the majority side have no skin in the game. Guaranteed bankruptcy. Whenever you propose anything sensible you will simply be downvoted. When you have to refinance they get their share from taxpayers and you have to pay up yourself or be diluted.

Makes totally sense but keeping 100% of a company on the books thats over indebted with no new plans to turn it around accept asking more debt to bail you out once again wont help. Adrian Gore owns 4.5% of Discovery yet he still as major power in the company. Through proper corporate governance you can protect the minor shareholders in a company. Yes it is risky to invest in a sinking ship but even the chinese saw a gap in the market to participate and at one stage wanted to buy equity. Imagine buying 49% (cant seem to see the government more then 49%) yes 51% would still be the best option. But owning 49% and having the cost effective solution and thechnology to turn it around you would be stupid not to invest in something that is right up your ally.

Don’t worry, my PAYE will take care of the 100 billion.

How about donating some money to MoneyChief’s new BMW charity fund.

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