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National Treasury Sets Out Tough Conditions For Eskom’s R59 Billion Bailout

Eskom - National Treasury Sets Out Tough Conditions For Eskom’s R59 Billion Bailout

National Treasury has spelled out a raft of conditions that Eskom must meet in terms of the Special Appropriation Bill.

The bill provides for the ailing power utility to receive R26 billion for the rest of this year and R33 billion for the next financial year.

Treasury officials briefed a joint meeting of Parliament’s appropriations committees on the bailout on Wednesday.

National Treasury said that the R59 billion that Eskom was set to receive under the Special Appropriation Bill may be used to settle its debt and interest payments and nothing else.

In addition, Eskom, which was sitting with around R440 billion in debt, must give daily, detailed updates on its liquidity.

Treasury also wanted to see monthly management reports signed off by the group CEO and to be notified of all deviations from the annual budget that top R100 million during the month.

Eskom must also submit a quarterly board-approved schedule of redemptions and interest payments for the full duration of loan agreements, within a week of the bill being enacted.

The conditions include Eskom submitting a monthly report on steps to recover payments from debtors who owed more than R100 million.

EWN

The post National Treasury Sets Out Tough Conditions For Eskom’s R59 Billion Bailout appeared first on iAfrica.com.

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