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Eskom bailout going to 'black hole', Parly hears

Cape Town - Two bills which would enable a bailout of billions of rand for Eskom were passed by the National Assembly on Wednesday evening in the absence of the largest opposition parties, reported Netwerk24.

While the ANC benches, including those of ministers, were full, the benches of the DA, EFF and VF+ were empty when the R23bn cash injection and the conversion of Eskom's subordinated loan of R60bn to equity were approved.

Political parties had been critical of the approval of the bailout and claimed that Eskom itself was responsible for its present situation because of excessive bonuses paid to top management as well as expensive catering contracts.

The parties expressed fear that this bailout money could disappear in a "black hole".

The EFF became so angry in the debate about the issue that all its MPs left the hall.

The drama started when Mzingisi Dlamini (EFF) refused to withdraw a statement that Deputy President Cyril Ramaphosa "and his friends at Glencore negotiated about tenders to supply coal to Eskom".

Dlamini claimed Ramaphosa had full control over decisions in Eskom because of his involvement with the war room on the electricity situation.

Deputy speaker Lechesa Tshenoli told Dlamini to withdraw the statement. EFF leader Julius Malema, however, responded that Dlamini cannot be asked to withdraw the statement, because it is a fact that Ramaphosa is closely involved with the war room on the electricity situation.

"He is here to steal the money. We will not withdraw the statement," declared Malema.

Tshenoli had a hard time establishing order while Malema, Floyd Shivambu and Mbuyiseni Ndlozi of the EFF refused the request that Dlamini withdraws his statement. Tshenoli eventually asked them to leave the hall, upon which they left.

Ramaphosa was constantly busy on his iPad and chewed gum.

After the EFF members left, the debate continued.

Dr Pieter Groenewald (VF+) said Eskom asked for R23bn, yet issued a tender on Friday for the regular delivery of 300 cakes to its headquarters.

Dr Malcolm Figg (DA) said Eskom is "broke, leaderless and without direction".

"Eskom has reached its own fiscal cliff. It is clear that this is not the end of the bailout. Load shedding has already caused significant damage - and a tariff increase will cause irreparable harm," he warned.
 
In his view, the R23bn bailout amount is equal to "100 Nkandlas". He was also critical of the fact that no details were available on which state assets will be sold to make the R23bn cash injection available to Eskom.

Minister of Finance Nhlanhla Nene said this information will be revealed "before the end of June".

Paul Mashatile (ANC) defended the bailout and said a strong and sustainable Eskom is needed so that the economy can grow faster.

The electricity shortage has become the biggest stumbling block for economic growth. Eskom has, however, agreed to set targets and submit quarterly reports on its cost cutting programme.

"We have also asked National Treasury to support Eskom, especially with its procurement programme," said Mashatile.

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