DA Maimane threatens litigation against Ramaphosa over ESKOM’s R33billion loan

 

Johannesburg The DA leader says he will now approach Eskom in terms of the access to Information Act for the terms and conditions of that loan to be made public.

Democratic Alliance (DA) leader Mmusi Maimane wants Eskom to divulge the terms and conditions of the R33 billion loan it had received from China.

Democratic Alliance (DA) leader Mmusi Maimane has threatened litigation against Cyril Ramaphosa should the president fail to divulge terms and conditions which led to Eskom receiving a R33 billion loan from China.

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Ramaphosa is yet to respond to Parliament on Maimane’s request, which was tabled two weeks days ago.

Maimane says that if the information is made public, it will minimise the risks of corruption.

“We’re simply trying to protect the people of South Africa from any corruption or any of those issues. Ultimately, we believe that we’ll go into litigation if needs be.”

He says the power utility should include in its report the interest rates agreed to- repayments terms and guarantees.

“We’ll wait and see what the president’s response to the prior application. But following that [Ramaphosa’s response] we’ll ensure that the legal compliance is in place. We’re simply trying to protect the people of South Africa from corruption, so ultimately that’s why we believe that if need be we’ll go into litigation.”

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The loan agreement was signed in July after high-level talks led by Ramaphosa and his Chinese counterpart Xi Jinping.

Eskom chief executive Phakamani Radebe said, in July, the government-backed loan of $2.5 billion was part of the power utility’s effort to secure funding to stay afloat.

Radebe added the loan showed there’s confidence in Eskom’s new leadership after the board was appointed in January 2018.

Hadebe assured South Africans that Eskom will fund the repayment of the loan itself.

He said the loan from the Chinese means Eskom has now secured 62% of funding for this financial year.

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