Mboweni's Medium-Term Budget: We can't continue throwing cash at Eskom

Mboweni's Medium-Term Budget: We can't continue throwing cash at Eskom

- Speculation had been rife that the government would make an announcement on Eskom's financial situation

- However, Finance Minister Tito Mboweni has said that the utility's management has yet to show any progress

- Speaking during the tabling of the Medium-Term Budget Policy Statement on Wednesday, Mboweni shed some light on the situation

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Finance Minister Tito Mboweni tabled the Medium-Term Budget Policy Statement on Wednesday.

Fin24 reports that Mboweni had been expected to announce how the state planned to reduce Eskom's R450 billion debt burden.

However, the minister is adamant that the utility had failed to make any significant progress on reforms.

Releasing a Special Paper on how the state-owned enterprise would be unbundled, Mboweni commented:

"Once I am convinced that the Eskom board and management has made an irrevocable commitment to implement the government’s decisions and there is enough progress, we will negotiate the appropriate size of debt relief. Eskom is a business and should be run that way."

READ ALSO: Eskom exec speaks out: Shivambu says it's proof Gordhan is dangerous

The minister is adamant that no further bailouts would be easily handed over to the struggling entity:

"We cannot continue to throw money at Eskom. For the sizeable support required, it cannot be business as usual."

Briefly.co.za reported that Economic Freedom Fighter Floyd Shivambu had recently slammed Public Enterprises Minister Pravin Gordhan over his involvement at Eskom.

This had followed a revelation by a board member that Gordhan had allegedly been interfering at the utility, preventing key actions from being implemented.

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Source: Briefly.co.za

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