Eskom could tank SA economy: finance minister

File: Sakeliga says parastatals like Eskom are limiting the pool from which they could draw expertise.

File: The High Court has found that Nersa acted illegally when deducting a R69-billion equity injection into Eskom.


JOHANNESBURG - If Eskom&39;s dire financial dire situated is not addressed urgently, the power utility could destroy the country&39;s economy. 

Finance minister Malusi Gigaba made the comment on Thursday during a breakfast meeting ahead of the World Economic Forum (WEF) gathering which takes place in Davos later in January. 

WATCH: Eskom is welcoming back two embattled senior executives

Eskom has yet to publish its interim financial results, meaning it faces severe penalties, including lenders recalling loans.

“As the CEO of the DBSA (Development Bank of SA) was saying earlier, if anything happened by the time we come back from Davos there would be no currency, there would be no government, there would be no country if Eskom went belly up… We, therefore, need to act now.”

In December, the parastatal said it was postponing the release of results as it needed to review the impact of the 5,23 percent electricity tariff increase granted by the energy regulator, as opposed to the more than 19 percent it had asked for. 


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