BACKTRACK
Union takes aim at PIC and Gigaba after new Eskom bail-out
After strenuous denials regarding an Eskom bail-out by the finance minister last year, the Public Investment Corporation (PIC) and the Government Employees Pension Fund (GEPF) have agreed to extend a R5bn bridging loan to cash-strapped Eskom. In September, Finance Minister Malusi Gigaba denied the PIC would be forced to extend loans to Eskom, saying there were "no dirty fingers" clamouring for the GEPF’s money in order to save Eskom. This is the first cash injection Eskom has received since July 2017, when the utility’s major lenders closed their taps to Eskom in the face of mounting corruption allegations and a corporate governance meltdown. The loan will fund the company’s operations during this month, including paying salaries and suppliers, the PIC and GEPF said in a joint statement on Monday. The GEPF, which manages the pensions of public servants, is one of Eskom’s largest bond investors with about R90bn invested with the junk-rated utility. Eskom hopes this new loan will spur...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.