Eskom chair warns of threat to the economy should debt not be repaid
There are funders that have extended loans to Eskom and if the loans aren't repaid it could have serious implications for the country.
JOHANNESBURG - Eskom board chair Jabu Mabuza has described the consequences for the country and its economy if the power utility defaults on its debt repayments.
Mabuza took the stand at the Zondo Commission yesterday and is expected to conclude his testimony on Monday.
Finance Minister Tito Mboweni announced this week that Eskom will receive a guarantee of R69 billion over the next three years to service its debt.
The power utility is sitting with debt of over R400 billion.
There are funders that have extended loans to Eskom and those loans have a material default clause which, if breached could have serious implications for the country.
The Eskom board chair explains:
“A breach of any of the covenants within Eskom, the fatal effect of it whether they are Denel or SAA…”
And this is the point he is trying to make.
“It’s fatal not only for the economy but for the country.”
Meanwhile, Mabuza said that Eskom was the theatre were corruption and state capture played themselves out.
(Edited by Refilwe Pitjeng)
#StateCaptureInquiry Mabuza now deals with the corruption at Eskom. Which he says manifests itself in procurement processes.— EWN Reporter (@ewnreporter) February 22, 2019