The government is focusing on a three-year R254bn debt relief programme for Eskom as part of a series of measures to get the beleaguered power utility back on its feet
Finance minister Enoch Godongwana at a news conference before his budget speech in Cape Town on Wednesday, February 22, 2023. Godongwana announced a R254bn debt relief programme for the struggling power utility in his speech. Picture: BLOOMBERG/DWAYNE SENIOR
“R337bn of Eskom’s debt is already government guaranteed. Explicitly taking on this debt will reduce fiscal risk and enhance long-term fiscal sustainability,” finance minister Enoch Godongwana said. “Additional funding is to be considered subject to strict conditions to allow the strategic equity partnership deal to be finalised. As a condition of such funding, all government guarantees to SAA will be cancelled,” the treasury said.
The bailout will be used to reposition the Post Office as a communication service that is on par with its digital and more efficient private competitors, which have eaten into its traditional consumer base in recent years as its finances and operations deteriorated. The state capture commission, headed by chief justice Raymond Zondo, found that state-owned enterprises including Transnet, Denel and SAA were at the heart of state-sponsored looting that saw the companies robbed billions of rand for the benefit of a corrupt politically connected few individuals and businesses.
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