Eskom, a study in fiscal futility and Darwinian stupidity
Our national utility, which is supposed to be the literal light of the nation, is both crippled and a crippling burden
South Africans’ frustrations with Eskom are at boiling point as the utility recently pushed up the price of electricity, is unable to keep the lights on in the face of slight economic growth, and has debt heavy enough to sink the entire economy. An urgent Special Appropriation Bill is about to be tabled to deliver an as-yet unspecified amount of money to Eskom, which should be terrifying enough.
The news gets worse, though, as media reports have suggested that the bailout is likely to be funded by a combination of loans, changes in government expenditure, as well as a tax hike. It bears repeating: another tax increase is on the table to help pay for the financial, structural and operational mismanagement at Eskom. And in this, it is apparent that Eskom’s problems are our problems...