Guiding consumers since 2009

Sale of government assets to fund Eskom

By Staff Writer
At the World Economic Forum in Davos, Switzerland, Finance Minister Nhlanhla Nene said that the government has identified non-strategic state assets that it will sell in order to raise R20 billion to assist Eskom in funding its R225 billion cash-flow gap. The assets that are set to be sold have not been identified as they may be market-sensitive.
In an interview with Bloomberg, Nene said, "We're making good progress… [The plans] are at an advanced stage, but a sensitive stage."
The first R10 billion cash injection is expected to be paid by about June this year. "We are looking at around June to release the first R10 billion, but that will only be done once we've received the proceeds from the disposal of state assets."
In recent weeks, Eskom has continually warned about the ongoing constrain on the power grid which may lead to load shedding, possibly on a continuous basis until April. Since they made the announcement there has been no blackouts, but Eskom says that the threat of load shedding is still there.
There is continued debate as to whether the power utility should receive a bailout from the government, as this is only a short term solution to an ongoing problem.
Eskom was forced to implement load shedding in December after the collapse of a coal silo at the Majuba Power Station, which reduced electricity supply by roughly 1 800 megawatts (MW). This forced Eskom to rely more heavily on its open gas turbines to supply power to the public.
Eskom spokesperson Andrew Etzinger has said that if Eskom does not get financial aid, there is a big risk of load shedding, as diesel supplies for the open gas turbines will run out by mid-February.
According to reports, Eskom will be conducting maintenance on its various units. In a press conference last week, Eskom CEO Tshediso Matona highlighted that maintenance of the various generators and power stations had not been carried out as it should have in the past.
He said: "Eskom is like a car that has not been maintained. Eskom has not stayed faithful to that maintenance religion for a very, long time. The reliability of our equipment is the price we are paying."
Another state entity that is due for a bailout is floundering South African Airways (SAA), who is set to receive a R6,5 billion guarantee from the government, on top of the R5 billion guarantee that is already in place. These are subject to SAA meeting certain requirements. For more information click here.

Recent Articles

Featured Are you entitled to your spouse’s pension after divorce?

Divorce means more than just parting ways with your partner. It may also involve parting ways with your assets. The Divorce Act states that your retirement fund forms part of your assets. This means that it will be considered when dividing up your assets.

Retrenched – what payments are you entitled to?

In the current struggling economic climate, retrenchments are a regular occurrence and not everyone survives the cut. If you find yourself on the receiving end of retrenchment you may have questions about the payments that are due to you.

Do you want to settle your debt?

You may be considering settling your credit account, whether it’s a credit card or various store accounts, now may be as good a time as any. This especially if you have saved, or you received a tax return or salary bonus. 

Can you afford a personal loan?

Taking out new debt is not always a choice. However, if you’re not pressed by a medical emergency or an unforeseen disaster, it’s worthwhile considering whether you can actually afford it. But what does it mean to “be able to afford a personal loan”? What percentage of your income should you not exceed dedicating to it? 


Eat for less on Tuesdays at Panarotti’s

Price: R59.99
When: Tuesdays
Where: Nationwide

Get discounts with Clicks ClubCard Seniors Programme

Price: Available on request
When: Daily
Where: Nationwide

Amani Spa Voucher Special

Price: R1000
When: Daily
Where: Cape Town, Jhb, and Port Elizabeth