Outcry against Cosatu’s call to use state pensions to save Eskom muddies waters
Plan’s weakness is focus on saving power utility rather than on guiding and financing energy transition
Cosatu’s proposal to use government employees’ retirement funds to reduce Eskom’s debt has sparked a huge debate. It has also raised the hackles of union members, who see the proposed plan as a cunning move to ransack the money chest that holds the deferred income of employees.
Right after Cosatu unveiled its plan, some public sector associations outside the union federation announced their opposition to the use of workers’ pension to shave Eskom’s debt from about R450bn to R200bn through an off-balance sheet special purpose vehicle involving the government, the Public Investment Corporation (PIC) and other development finance institutions...