Eskom gets R5-billion bailout

JOHANNESBURG – Government will make its final bailout payment to Eskom.

The state utility will receive R5-billion despite the finance minister previously saying that he would withhold the funds.

The payment was to be withheld until Eskom implemented further cost cuts.

Treasury also wanted the parastatal to improve maintenance and complete its capital expenditure program.

The funding was promised in 2014 as a rescue package as the company struggled to fund new plants and is expected to be paid out next week.

In a statement on Friday, the national treasury released a statement to clarify just what the bailout entailed.

It states, “Government approved fiscal support of R23 billion to Eskom, to be transferred in three tranches of R10 billion in June 2015, R10 billion in December 2015 and R3 billion in March 2016.”

“A total of R15 billion has been transferred this far. Of the second R10 billion due to have been transferred in December 2015, the Minister of Finance withheld R5 billion.”

“Following the submission of additional information by Eskom, on 22 February 2016, the Minister of Finance approved transfer of a further R3 billion. This R3 billion will be transferred to Eskom next week.”

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