Home South African DA to oppose Eskom bailouts

DA to oppose Eskom bailouts

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The DA says it will oppose any plans to bail out Eskom during Finance Minister Enoch Godongwana’s medium-term budget later this year.

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THE DA says it will oppose any plans to bail out Eskom during Finance Minister Enoch Godongwana’s medium-term budget later this year.

This is after President Cyril Ramaphosa announced on Monday that he is working to finalise a “sustainable solution” to Eskom’s debt crisis.

The president said the minister of Finance and head of Treasury will outline measures on how government plans to deal with the Eskom matter when he presents his medium term budget policy statement in October.

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The DA spokesperson for appropriations, Ashor Sarupen, said the last time government announced such a plan in 2019, it resulted in the state providing Eskom with a R59 million bailout over three years through a Special Appropriation Bill which was in addition to the main budget of R20 billion over 10 years.

Sarupen added that such a bailout for the power utility will hinder the provision of much needed services elsewhere, this is after Eskom was given yet another cash injection of R21.9 billion in February 2022.

“The state has created an untenable situation where Eskom mismanagement has been rewarded constantly with taxpayers forking out cash that should be spent on public services. This means that citizens of South Africa pay twice for energy, through their electricity bills, and through their taxes,” Sarupen said.

The party said, as such, it will vigorously oppose any planned bailouts to Eskom in the coming financial years, adding that the Eskom crisis is the ANC’s doing.

“For this reason, the DA will vigorously oppose any planned bailouts to Eskom in the coming financial years. Eskom is in its financial mess through years of ANC corruption, and the DA’s position is that Eskom debt should be funded through privatisation of generating capacity, rather than through bailouts that deprive South Africans of quality basic services, without having any effects on keeping the lights on,” the party said.

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