5 February 2018

South Africa: Nehawu Shocked By PIC R5 Billion Bailout of Eskom

press release

The bailout takes place while Eskom is embroiled in state capture investigations. Earlier today the Hawks confirmed that they have served a subpoena on Eskom to force the power utility to hand over documents linked to the state capture investigation while Eskom claims that some documents may have been shredded. To us, this tantamount to defeating the ends of justice and a desperate move to conceal the severity of the state capture project.

The current financial crisis that engulfs Eskom comes after the relentless looting spree by the Guptas and their cronies. For some time the power utility was used as a cash cow by the Guptas and their golden boy Brian Molefe. Our view is that no bailout must be given to Eskom until the tentacles of the Guptas have been totally removed.

What worries us the most is that just last year Eskom received a qualified audit report, which was primarily due to irregular expenditure, and poor leadership. Its poor governance and recklessness with finances had left it on the brink of insolvency. In our view a new board alone without a sound financial turnaround strategy is not enough to save the power utility from total financial collapse.

Lastly, NEHAWU will continue to demand that workers money be invested in the Government Employee Housing Scheme for public servants other than being wasted in speculative projects by the PIC and bailing out failing SOEs.

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