Economist claims no one will buy Eskom, not even for R1

Economist claims no one will buy Eskom, not even for R1

- Economist Iraj Abedian says that no private investor would purchase the utility

- He also criticised trade unions for opposing Eskom's proposed unbundling

- Abedian also said that Mboweni's budget plans did not go far enough to address the SOE's problems

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

An economist has rubbished suggestions that Eskom might be privatised, saying that no one would buy the utility, even for as little as R1.

The comments were made by economist Dr Iraj Abedian.

This follows Pravin Gordhan's announcement that job losses will soon be underway in an attempt to cut costs.

PAY ATTENTION: Save mobile data with FreeBasics: Briefly is now available on the app

Eskom is currently struggling under R420 in debt. Government has proposed several plans to reform the failing SOE, including unbundling it into three entities.

However, this move has received significant pushback, particularly from certain trade unions like NUMSA which claim it is the first step toward privatisation. However, economists like Abedian say that privatisation is not on the cards.

He said that Eskom does not have any value to encourage any private investors to purchase it, according to fin24. Abedian also slammed trade unions for fighting the unbundling, saying that it would be in the national interest.

READ ALSO: Economist claims Zuma's 2nd term cost SA R470 billion

Finance Minister Tito Mboweni said that Eskom would receive R69 billion over the next 3 years to ease its debt problems, but Abedian said thid plan did not go far enough to address the power utility's woes.

In Abedian's view, a better move would have been to pursue the funds that were looted from Eskom, which he suggests could be as high as R400 billion.

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Related news
Mzansi reacts to Mbalula's saying load shedding will soon be over

Mzansi reacts to Mbalula's saying load shedding will soon be over

Mzansi reacts to Mbalula's claim that load shedding will be eradicated
Briefly.co.za
Mailfire view pixel