Additional billions in taxpayer funds going to Eskom

Staff Writer | Jul 23, 2019
Eskom is to receive an injection of some R26 billion in 2019/2020, and another R33 billion in 2020/2021.

This is according to a copy of a Special Appropriations Bill seen by journalists. Details were expected to be confirmed this week. The funds are reportedly to be drawn from the Central Revenue Fund.

President Ramaphosa has made it clear that Eskom is regarded as central to the country’s future and is too valuable a national asset to be allowed to fail. In February, a three-year bail-out worth some R69 billion out was announced.

Eskom has long been the subject of controversy. Electricity supply failures have been a weighty concern for business, investors and the public at large. Corporate governance failings at the utility have been a widespread cause of concern. In addition, Eskom’s debt far exceeds R400 billion, placing a significant strain on the country’s fiscal stability.

 

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