DA: Bobani enjoys protection of ANC councillors
Politics
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.
#StateCaptureInquiry Jabu Mabuza is on the stand today. Adv Tembeka Ngcukaitobi is representing him. pic.twitter.com/NIkrEFY0Vn
— EWN Reporter (@ewnreporter) February 22, 2019
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
More in Business
-
Taking it up a notch: Eskom now says stage 2 load shedding for Friday
-
Mabuza makes it clear that he supports Mboweni’s economic recovery plan
-
Stage 1 load shedding for Friday, no weekend power cuts
-
Mabuza: Govt can't afford to ignore advice of rating agencies
-
Rand firms as Cabinet approves power plan
-
Lack of implementation also to blame for SA economic woes - Mboweni
Comments
EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.
comments powered by DisqusHowever, we will NOT condone the following:
- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.
We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.
We strive to make the EWN community a safe and welcoming space for all.
EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.
Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.
EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.