Eskom gets R17.7bn of planned support | Fin24
 
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Eskom gets R17.7bn of planned support

Apr 18 2019 21:27

Eskom has received R17.7bn of planned financial support from the country’s National Treasury, according to Public Enterprises Minister Pravin Gordhan.

The transfer, which is part of a R23bn of support pledged by the government for its current fiscal year, was approved by Finance Minister Tito Mboweni on April 2, Gordhan said in a text message.

Eskom is saddled with R419bn of debt and isn’t selling enough power to cover its interest payments and operating costs, a legacy of years of mismanagement and cost overruns on new plants.

The government said in February that it will support the state-owned utility with a R69bn cash injection over the next three years.

Johannesburg-based Eskom needed the funds to be transferred as quickly as possible to ensure its financial stability, Public Enterprises spokesman Adrian Lackay said by phone from the city.

eskom  |  gordhan  |  pravin  |  financing  |  state owned enterprises
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