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GEPF to provide R5 billion loan to Eskom

For one month.

The Government Employees Pension Fund (GEPF), via the Public Investment Corporation (PIC), has agreed to provide Eskom with a loan of R5 billion to help cover expenses for the month of February.

According to the joint statement by the GEPF, PIC and Eskom, the power utility is experiencing “enormous liquidity constraints”, which are threatening its going concern status. 

The bridging facility will be entirely backed by unutilised government guarantees at Eskom’s disposal, meaning the full faith and credit of the national government will stand behind the loan.

“The GEPF and the PIC are encouraged that the new Eskom board and the new management team have moved with the necessary speed to restore good corporate governance at Eskom. The utility announced its interim financial statements last week, which had previously been delayed, in a frank and transparent manner,” Daniel Matjila, CEO for the PIC, said.

The loan will give Eskom the breathing space needed to secure the required R20 billion from other lenders. 

Read: 

New Eskom board needs to find R10bn in 2 days

The devil in the detail of Eskom’s interim results

Listen: PIC extends R5 billion loan to Eskom – for now

COMMENTS   10

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O gosh! The GEPF won’t see that money anytime soon!!

(My initial response was “phew, we as taxpayers are off the hook…the GEPF will pay”. But then reality struck as it’s only part of what Eskom needs….so will have to brace again for 21 Feb 2018 Budget Speech! I’ll then place my ballistic helmet on my head & close my eyes…)

Gepf bottom line the members are members of the communities that are in arrears to Eskom so the the members to go around encouraging others to pay their bills
otherwise more good money to reduce pension fund returns and thus smaller pensions

The demise of ESCOM is unforgivable and a very graphic example of Government corruption and ineptitude. What a very sad state of affairs. Investors beware!

“A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading.” Wikipedia

1. Eskom does not have a viable business model.
2. Board members and managers have committed fraud on a grand scale.
3. Old debt is being repaid with new debt. The investment of the GEPF is used to pay the interest to existing bond holders.
4. Eskom does not generate a profit to repay the loan.
5. The GEPF will only see their money again if Eskom manages to find a bigger fool down the line.

What is the value of a government guarantee when everybody knows that government does not have the means to honor existing guarantees? If lenders call on the guarantees, government will have to print the money to repay the debt with depreciated currency (Zimbabwe style).

So what we have here, is that government is granting an unsecured loan to government. Eskom can’t repay the existing loans, so government lends them a larger amount to cover the old debts and kick the can down the road for a month. This is exactly what Viceroy accuses Capitec of.

Very interesting viewpoint, Sensei. Eskom got this one coming…

(Also an example what happens when Govt through their SOE’s tries to employ ALL their voters!)

Its all about to hit the fan.
If I was a Government employee I would be worried, very worried.
Sure, the Taxpayer will pay banker, but the taxpayer is empty – very empty.
Once again, our thanks to Mr Zuma and the ANC. he he he !

Ag no man, don’t worry. By the time the taxpayer has to refund these obligations to the broke GEPF retirees, we’ll have an army of taxable university graduates lining up to pay their dues to the country. We’ll thank that deep visionary Jacob Zuma later.

Yes, let’s be positive folks – note too that the Hawks are going to recover ALL the money that the Zuptoids have stolen from us, despite all the shredded documents and the wasted years of inaction by the NPA which have allowed State Capture to turn into a Cold Case.

Ja Nee- all the Black Diamonds in private business will generate huge income and taxes and save the day.

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