Eskom’s R420 billion debt and accruing interest is a conundrum

Die Vryburger

Eskom’s R420 billion debt and accruing interest is a conundrum
Eskom's R420 billion debt and accruing interest is a conundrum. Photo: Die Vryburger

The Power Supply’s major concern is apparently not just how to keep it’s head above water, but how the huge debt burden of over R420 billion will be paid. As if this is not already a nightmare, the capital must also be paid and together with the interest that is accruing, it becomes a real conundrum.

It also appears that the task team appointed by Cyril Ramaphosa to come up with recommendations on how Eskom can be saved from his bankruptcy, are too none the wiser.

As time goes by for the task team, who have already lost several members who no longer want to be saddled with the bankrupt entity’s problems, Eskom continues in its sumptuous and luxurious style.

Economists point out that an unusual set of measures are needed to salvage Eskom and say it will take years before the bankruptcy can be phased out. But without getting rid of hundreds of redundant and unnecessary workers and without a knowledgeable management team and a strong Board of Directors, it is an impossible task.

The application of law and order goes hand in hand with this because the payment defaulters must be tackled and municipalities must know their power will be permanently switched off if they do not pay.

Read the original article in Afrikaans on Die Vryburger

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