Eskom cannot survive without state support: Jabu Mabuza

Jabu Mabuza.

The only short-term option to salvage Eskom, whose debt has reached R450bn, was government support, the state-owned power utility’s chair, Jabu Mabuza, told MPs on Tuesday.

Eskom executives, led by public enterprises minister Pravin Gordhan and Mabuza, briefed a joint meeting of the appropriations committee, the public enterprises committee and the select committee on appropriations on the Special Appropriation Bill, which allocates R59bn to Eskom over the next two years — R26bn in 201920/20 and R33bn in 2020/2021.

In addition, finance minister Tito Mboweni announced a support package of R23bn for 10 years in his February budget speech.Eskom does not generate sufficient revenue to service its debt, which had reached its limits, and its liquidity has deteriorated, Mabuza said.

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