PIC chief apologises over R5bn Eskom loan
Public Investment Corporation (PIC) CEO Dan Matjila was forced to apologise to public servants after they bemoaned the lack of consultation when the investment manager advanced R5bn to Eskom. The PIC on Monday announced that it would, on behalf of the Government Employees Pension Fund (GEPF), advance a R5bn bridging facility to Eskom to fund operations in February. Eskom needs to raise R20bn in February to fund operations until the end of the financial year in March. The PIC said that Eskom had shown it letters of commitment from three commercial banks to provide the funding, but that this would be available only by the middle of February as the banks needed to satisfy the requirements of internal committees. The PIC says it expects that the loan will be repaid at the end of February. It did not disclose the interest rate but said it had insisted on a government guarantee to back the loan.