Eskom

Chairperson of the Standing Committee on Appropriations (SCOA) in parliament Sfiso Buthelezi on Tuesday said indebted power utility Eskom should be provided with the necessary support it required as it couldn’t be allowed to collapse.

Buthelezi spoke to Xinhua as SCOA is embarking on a three-day visit to Gauteng to engage with Eskom’s management on several issues including poor governance, financial problems and cost escalation.

“Eskom is a very important institution for government, for the economy and for development of this country. It is too important that it can’t be allowed to fail,” he said.

Buthelezi said members of parliament have been engaging with the state owned company’s management, board members and unions to get to the bottom of challenges facing the company.

“We are trying to get the holistic view of what’s happening so that we can understand it better. The minister of finance has gone to parliament to present a bill where government wants to refinance Eskom to the tune of 59 billion Rand (3.97 billion USD).”

He said Eskom’s debt of 440 billion Rand could have an impact on the country’s fiscus if it’s not dealt with.

“Eskom’s indebtedness affects the national fiscus because we guarantee as government the portion of the debt, creditors can approach the state to get their money so there’s that domino effect which is there which is why you see government being so serious.” said Buthelezi, adding that billions that the Eskom was owed by both state and private entities were negatively affecting its finances.

Buthelezi added that the committee was concerned about irregular spending “which keeps coming up at Eskom.” Enditem

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