SA cannot afford the financial collapse of Eskom

The DA will write to the Chairperson of the Portfolio Committee on Public Enterprises, Ms Lungi Mnganga-Gcabashe, to request that she urgently call the Minister of Public Enterprises, Lynne Brown, Eskom CEO, the COO, the interim CFO and Chairperson of the Eskom Board, to appear before Parliament and present an accurate picture of the financial situation at Eskom.

This comes after a report Eskom presented to Government, as the major shareholder, revealed that the power utility only has R1.2 billion left in its cash reserves until the end of November 2017, when it should have R20 billion.

The DA is gravely concerned about the current state of Eskom’s finances as it is quite clear that the rife corruption and mismanagement at the power utility has resulted in this dire deterioration of its finances.

South Africa simply cannot afford yet another state entity facing imminent collapse as a result of financial mismanagement.

With limited cash available, Eskom may have to approach National Treasury to finance a bailout.

The economic implications of Eskom collapsing will be severe, as it will have a negative impact on our already struggling economy, sovereign rating and threaten the job security of many South Africans. Government should have never allowed the situation to get to this point.

Eskom must be cleaned up to ensure financial stability and future funding commitments.

Silence is not an option. Eskom needs strong, bold and ethical leadership from the Minister and Eskom leadership to steer this vital entity away from a financial precipice and to ensure that it works for the people of South Africa.

Statement issued by Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, 14 November 2017