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Cape Town - State holdings are to be liquidated to fund a R20bn equity injection for Eskom's build programme, government spokesperson Themba Maseko said on Thursday.
Briefing the media following cabinet's regular Wednesday meeting, he said cabinet had noted and supported a hybrid funding solution which would enable Eskom to continue with its build programme and ensure security of energy supply.
The hybrid solution consisted of increasing the guarantee framework from R176bn to R350bn to enable the utility to continue with its committed build programme up to Kusile power station and an equity injection of R20bn over three years, starting in the 2011/12 financial year.
"The equity injection will be funded from liquidating state holdings in non-strategic and non-core assets."
The Treasury would identify such assets in due course, in consultation with the public enterprises department and other relevant departments, Maseko said.
Rica breather on cards
Cabinet has also approved a six-month extension of the deadline for the registration of customers of mobile cellular operators.
In terms of legislation, cellphone users had to register their SIM cards by the end of December 2010.
Maseko said the Regulation of Interception of Communications and Provision of Communication-Related Information Act would be amended shortly to extend the deadline by six months.
Mobile operators would be required to report to the government on how they planned to comply with the new deadline, he said.
Maseko also said the hefty fine imposed on Pioneer Foods for price-fixing shows such behaviour will not be tolerated.
The cabinet had welcomed the settlement reached between the competition commission and Pioneer which would see the company paying up to R1bn in fines, penalties and other costs for its role in a price-fixing cartel, he said.
This cartel was engaged in illegal and uncompetitive practices that saw the price of flour, bread and poultry products soar to the detriment of ordinary South Africans battling to make ends meet.
"This settlement sends a clear signal to all companies that such behaviour will not be tolerated," he said.
The cabinet commended the competition commission for the innovative settlement, which included forcing the company to reinvest in activities that would bring new entrants into the industry through a competitive fund and the establishment of a special fund to bring food prices down.
These innovative measures addressed uncompetitive behaviour but, most importantly, would benefit consumers, especially the poor, by reducing the price of basic food products such as bread, Maseko said.
