South Africa: SA's State Pension Fund Draws Line in the Sand On Eskom Bailout

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The Government Employees Pension Fund's principal executive officer, Abel Sithole, said it will only consider recapitalising debt-laden Eskom if the government puts in place good terms and conditions. These include an attractive return on investment and government guarantees on any money it extends to Eskom.

As Eskom's operational crisis deepened on Thursday, 5 December with the resumption of load shedding during summer, Africa's largest pension fund has taken a hard-line stance on any use of funds belonging to public servants to bail out the debt-laden power utility.

The Government Employees Pension Fund (GEPF), which manages R1.8-trillion in pension savings belonging to 1.7 million current and retired public servants, said it would only consider recapitalising Eskom if the government puts in place strict repayment terms and conditions.

Abel Sithole, the GEPF's principal executive officer, said the pension fund has not been asked by the government to bail out Eskom but it would consider a request to recapitalise the power utility, which supplies more than 90% of SA's electricity.

"But if we were to be approached to consider recapitalising Eskom, we would only consider it if the government offers us good terms and conditions," Sithole told Business Maverick after the release of...

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