Local, provincial and national government owes Eskom nearly R189 million in electricity arrears

This article id from Fin24.com

Johannesburg – National Treasury – and therefore the South African taxpayer – will carry the full risk of the $3.75bn (about R28.6bn) loan granted by the World Bank to Eskom in April.

This emerges from a written parliamentary response by Finance Minister Pravin Gordhan.

Dr Dion George (DA), who submitted the written question in parliament, said on enquiry that it was a mistake for National Treasury to carry the full guarantee without having imposed any conditions on Eskom.

The fact that government has to guarantee the entire loan shows that the World Bank has more confidence in the South African taxpayer than it has in Eskom, he said.

In terms of Treasury’s conditions Eskom has to submit capital expenditure and management reports to Treasury every quarter. George believes this to be inadequate.

In his response Gordhan mentioned that the World Bank loan could be applied retrospectively for parts already purchased for Medupi, Eskom’s new coal-fired power station.

While Eskom is embroiled in heated wage negotiations that could lead to blackouts, the Mail & Guardian has established that the troubled power producer spent R12,6-million on football tickets for the 2010 Fifa World Cup — including some of the priciest tickets available.

In the latest edition of Finweek, Sikonathi Mantshantsha reports that Eskom has asked international mergers and acquisitions teams of financial giants JPMorgan and Goldman Sachs to advise it on a proposed restructuring.

Eskom posted the worst performance. Despite this, its directors were the most highly paid.