Finance minister announces R69billion bailout for Eskom

This could be good news for the currently embattled State owned entity Eskom.

According to the minister of finance, Tito Mboweni during his budget presentation, Eskom will get an additional R69 billion from the state over the next three years to help it service its debt.

“We are setting aside R23 billion a year to financially support Eskom during its reconfiguration,” the minister said.

He said the government was not taking over Eskom’s debt, and the cash injections would go hand in hand with the restructuring of the utility into three independent components.

“I want to make it clear – the national government is not taking on Eskom’s debt. Eskom took on the debt. It must ultimately repay it.”

A chief reorganisation officer would be appointed by himself and Public Enterprises Minister Pravin Gordhan to implement the unbundling of the company.

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