ANC wants to use taxes and pensions to bail out troubled Eskom

ANC wants to use taxes and pensions to bail out troubled Eskom

- The power utility is demanding a 15% price hike

- It has also proposed using private assets like pensions to invest in Eskom

- Even with the proposals, Eskom's CEO says it will remain at least R50 billion in debt

Eskom wants taxpayers to fork out even more money for electricity.

The power utility has asked for the price of electricity to be increased by over 10 percent in order to pay toward its mounting debt. 

However, Eskom CEO Phakamani Hadebe has said that even if Eskom is granted its demanded 15 percent annual price increase, this will still not be enough to pay off all its debt.

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It is estimated that even with the price increase, Eskom would still be R50 billion in debt at the end of the three year period. Eskom's current levels have increased to R419 billion, with the power utility now struggling to borrow the money it needs to keep the lights on. 

Several organizations like the Organization Undoing Tax Abuse and the Southern African Faith Communities Environment Institute have opposed the price hike.

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The DA has also spoken out against the proposal. 

"It is clear that the ANC is not looking at reforming the utility that has for many years been the primary source for looting by the governing party," the party said in a recent statement.

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The ANC's new manifesto also includes controversial proposals to reverse Eskom's spiraling debt. One of these is the idea of prescribed assets. This would mean that private money managers would be forced to invest in state-run enterprises like Eskom. 

The DA slammed the proposal, saying it means "that ordinary South Africans' pensions and savings could very well be used to settle the debt that Eskom has raked up under the ANC."

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Source: Briefly.co.za

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