Eskom needs cash injection in 3 months or faces insolvency, Parly committee told
That's the cold hard fact contained in a presentation to Parliament's Public Enterprises Portfolio Committee.
CAPE TOWN - Eskom is technically insolvent and will fail to exist at the current rate by April.
That's the cold hard fact presented to Parliament's Public Enterprises portfolio committee on Wednesday.
The company's debt now stands at R420 billion, posing a significant risk to the economy.
In his State of the Nation Address last week, President Cyril Ramaphosa announced that the entity is to be unbundled into three separate entities.
Eskom is not making enough money to cover its operating and debt service costs.
Municipal debt continues to escalate and the wage bill has also grown threefold since 2007, now standing at almost R30 billion.
An aging fleet, ongoing coal shortages, lack of investment in mines have been cited as reasons for poor operational sustainability.
Acting Director-General Thuto Shomang says cost overruns at Medupi and Kusile power stations are exacerbating the crisis.
He says that systemic corruption and state capture has comprised the credibility of the organisation.