Mboweni proposes Eskom government bailout

Finance Minister Tito Mboweni.

Finance Minister Tito Mboweni.

AFP/Rodger Bosch
  • Editor's note: Earlier we incorrectly reported that Eskom will receive a R69-billion bailout. The figure is R59-billion. 

JOHANNESBURG - Eskom will get a bailout of R59-billion from government over the next two years, if Parliament approves it.

Finance Minister Tito Mboweni tabled a special appropriation bill in Parliament on Tuesday to help the ailing parastatal, but he said the company's business model had to change.

Eskom will receive R26-billion of the money this financial year and R33-billion in 2020-21.

WATCH: Eskom will be unbundled, says Gordhan

A restructuring officer for Eskom could also be announced later on Tuesday.

Mboweni said discussions with Public Enterprises Minister Pravin Gordhan were at an advanced stage.

READ: Eskom technically insolvent

“Without major changes to Eskom's business model and financial assistance from government, the company will be unable to meet its obligations for the 2019/20 year. We must thus face the reality that a large vertically integrated energy company is an outdated model in a changing industry both domestically and internationally.”

Other bailouts on the cards include that of the SABC, SAA and Denel.