Supplementary Budget 2020

Parliament greenlights R59bn for Eskom

(Gianluigi Guercia, AFP)
(Gianluigi Guercia, AFP)

The National Council of Provinces on Thursday agreed to a special appropriations bill that would see Eskom receive an additional R59bn over the next two years.

Last week members of the National Assembly put their stamp of agreement on the bill. It now requires the president's assent.

The R59bn has been accounted for in the medium term-budget policy statement, announced by Finance Minister Tito Mboweni on Wednesday.

Treasury has allocated R230bn to Eskom over the next 10 years. Government has elected to bring forward some of those monies to help Eskom maintain its going-concern status and service its debt and interest costs. Eskom's annual debt and interest payments averages R85bn over the next three years, according to the medium-term budget policy statement.

Through the special appropriation, the R23bn allocated for 2019/20 will be topped with R26bn, and the R23bn allocated for 2020/21 will be topped with R33bn.

An additional R10bn is earmarked for 2021/22, but this is not part of the special appropriation bill and will be accounted for in a separate process, according to Treasury.

While there have been expectations for Mboweni to make announcements on dealing with Eskom's R450bn, Treasury has no intention on providing debt relief to Eskom until the power utility fixes its operations.

"Everyone waiting for us to say something on Eskom debt. Let us fix Eskom before we can start talking about how to take over or to address the debt situation at Eskom.

"You can give them reprieve today, if you do not fix Eskom as a business that is supposed to provide a service, you will have a problem" Treasury Director General Dondo Mogajane told members of Parliament earlier on Thursday at a briefing on the medium term budget policy statement.


ZAR/USD
16.92
(-1.01)
ZAR/GBP
21.56
(-0.27)
ZAR/EUR
19.84
(-0.54)
ZAR/AUD
12.16
(-0.26)
ZAR/JPY
0.16
(-0.92)
Gold
1896.50
(-1.04)
Silver
23.86
(-4.50)
Platinum
876.00
(-0.79)
Brent Crude
42.14
(-3.94)
Palladium
2260.50
(-1.11)
All Share
53443.76
(+0.23)
Top 40
49294.16
(+0.29)
Financial 15
9429.70
(-0.94)
Industrial 25
71583.70
(+0.80)
Resource 10
53879.11
(-0.10)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1321 votes
It depends on how the funds are used.
73% - 8690 votes
No. We should have gotten the loan elsewhere.
16% - 1916 votes
Vote