South Africa: Cosatu's Proposal for PIC-Funded R250 Billion Bailout and Eskom's Municipal Debt Take Centre Stage

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It's Day Two of Nedlac discussions on Cosatu's proposals to use government workers' pension and social savings to slash Eskom's R450-billion debt. That it got here means the pitch first tabled on Monday is being taken seriously. And this highlights the depth of the Eskom crisis -- a new twist that unravelled before Parliament's spending watchdog, Scopa.

That Monday's discussions at the National Economic Development and Labour Council (Nedlac) are continuing on Wednesday 5 February 2020 is a good thing. It means government, business and organised labour are talking -- even if at this stage it's just a process to agree on processes to deal with the Eskom mess.

Hopefully, this will happen before the State of the Nation Address on 13 February 2020, so President Cyril Ramaphosa can make a constructive announcement, to be backed up in the Budget on 26 February. All that in good time for the Moodys' decision at the end of February, a key date as the rating agency is the last that has kept South Africa clawing to investment grade.

Basically, Cosatu told Nedlac on Monday that everyone loses out when Eskom implodes. Or as Cosatu's presentation, seen by Daily Maverick, put it:


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