JOHANNESBURG – The Public Servants Association of South Africa (PSA) said it feels betrayed by the Public Investment Corporation's (PIC) decision to approve a lifeline of R5-billion to the struggling power utility, Eskom.
“The PSA is shocked by the alleged decision of GEPF Chairperson and PIC board and feel betrayed after all parties agreed in principle that no SOE will be bailed out until all parties are satisfied that governance is improved in all institutions that we invest or support. We oppose this bailout irrespective how it is termed. It is now clear that we cannot trust both boards to look after our members pension, the PSA in the meantime is consulting with its attorneys to urgently look at declaring the whole PIC board illegally constituted after the due date of the 12 February 2018 given to the PIC to prove its board’s legitimacy,” the PSA said in a statement.
“Our attempts to reason with the Finance Minister and the GEPF and PIC boards has come to naught. This R5 Billion un-consulted illegal transaction will be met with necessary consequences for GEPF and PIC,” the union added.
Eskom still needs R20-billion to fund its operations.
Recent changes implemented by the government at Eskom have convinced some lenders that the company is on the mend.
Its results last week however painted a bleak picture.
The utility sits with a R357-billion debt and the company’s cash balance dropped from R30-billion to R8,5-billion rand.