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Cape Town - Acting Eskom chief executive Brian Molefe has given the first hint of which “non-core” assets Finance Minister Nhlanhla Nene had in mind to be sold to raise funds for troubled national power utility Eskom.
Addressing a meeting of the public enterprises and energy portfolio committees of the national assembly on Wednesday, Molefe said Eskom is still looking at non-core assets which have "potential” to be sold.
READ: Molefe: Eskom needs 3 000 MW by end of 2015
Nene announced in his October mini budget that non-core assets in the state sector could be released to help Eskom.
Although he mentioned this again in his February budget, he subsequently said he could not divulge which assets were being considered because this would undermine the very process of sale.
However, Molefe said he had had his first board meeting at the weekend - his first since being named as acting CEO on Friday - and the issue of the Eskom home loan book had been raised.
“By the material conditions that confront us now… there is at least one asset… that is the (Eskom) home loan book,” he said, noting that it is not the core competency for Eskom to make loans “for loans are not core business (to) Eskom”.
He first said the Transnet home loan book would be sold, but changed this to Eskom when corrected by Eskom officials. Molefe, who moved from Transnet CEO to the acting position of Eskom CEO, said the Transnet home loan book had already been sold.
“Transnet sold its home loan book some time ago. It is a decision it does not regret. There is potential for R7bn in there… (we) can dispose of it as a matter of urgency.”
