Registered users can save articles to their personal articles list. Login here or sign up here

Eskom gets R17.7bn of planned support

The transfer is part of a R23bn support pledge by the government, for the current fiscal year.

South African power utility Eskom has received R17.7 billion ($1.3 billion) of planned financial support from the country’s National Treasury, according to public enterprises minister Pravin Gordhan.

The transfer, which is part of a R23 billion of support pledged by the government for its current fiscal year, was approved by finance minister Tito Mboweni on April 2, Gordhan said in a text message.

Eskom is saddled with R419 billion of debt and isn’t selling enough power to cover its interest payments and operating costs, a legacy of years of mismanagement and cost overruns on new plants. The government said in February that it will support the state-owned utility with a R69 billion cash injection over the next three years.

Johannesburg-based Eskom needed the funds to be transferred as quickly as possible to ensure its financial stability, Public Enterprises spokesman Adrian Lackay said by phone from the city.

© 2019 Bloomberg L.P
Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.


To comment, you must be registered and logged in.


Don't have an account?
Sign up for FREE

Eskom’s management will be pleased about this. Now further performance bonuses can be paid and friends and family can resume their tenderpreneurship.

OK, fair enough.

So this means that R17bn could’ve been spent on uplifting the poor (majority electorate) on various social programs(?)

Expect more social unrest going forward….

They are not bailing out Eskom. They plunder the taxpayer to bail out BEE schemes that depend on Eskom. Eskom is merely the conduit, the tentacles of the BEE parasite. This parasitic BEE infection turned Luthuli House into a graveyard for zombies. The parasite took over the entire country. Soon it will suck the purchasing power out of the currency and spit out 20 million diseased and starving ANC supporters.

Eskom is rolling cash. They need this money to service their loans and then they borrow more to pay salaries.

Eskom needing urgent new loans to finance loans coming due is confirmation that neither Eskom nor the Government know what they are doing. Unbelievable !

I don’t think this was ‘planned’. Unless Eskom ‘planned’ their failure?

Load All 6 Comments
End of comments.


Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.



Follow us:

Search Articles:Advanced Search
Click a Company: