Strings attached to Eskom bailout

Treasury appeared before Parliament's Appropriations Committee on Wednesday to explain why Eskom should receive another R59-billion over the next two years. #Courtesy DStv403

CAPE TOWN - Eskom must sell off its finance company with a loan book of over R10-billion and consider salary cuts.

These are some of the conditions Treasury is mulling in exchange for a R59-billion bailout over the next two years.

READ: SA to publish Eskom plans in next few weeks

Director-general Dondo Mogajane told Parliament the fiscus can't simply continue to rescue the power utility.

Treasury is still drafting the conditions for the first part of the bailout -- R26-billion in this financial year.

READ: Eskom needs urgent turnaround plan: Moody's

But some proposals are already on the table.

Mogajane says without the bailout, Eskom won’t have any cash in the bank by March next year and could require even more money. 

READ: Eskom announces R20.7bn loss

MPs want to see what progress Eskom has already made to turn the ship around before it endorses the transfer

Eskom is expected to appear before the committee next month before MPs will rubberstamp the bill.

Source
eNCA