Minister Godongwana: Eskom’s unsustainable debt poses a risk to the state

Finance Minister Enoch Godongwana Eskom’s debt needs to be dealt with as it poses a risk to the state.

He was part of a cluster of ministers who addressed the media on the way forward with regards to combatting rolling power cuts.

President Cyril Ramaphosa said last week that the ministers would plot the way forward after weeks of power cuts.

The minister said that Eskom had not asked for money yet but the utility’s debt was unsustainable.

“If it is unsustainable, it poses a risk to the sovereign. To avoid that sovereign risk, the sovereign has to step in. That principle is kind of agreed. We’ll be going to the Cabinet lekgotla on the first of September with a proposal to deal with that issue,” Godongwana said.

He said that assistance for Eskom had already been discussed.

“The matter was raised with a figure of about R2 billion. On closer interaction with Eskom, Eskom said that it was too early to do that precisely because that have given the generation division R8 billion for maintenance,” the finance minister said.

-EWN

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