CLAIRE BISSEKER: Eskom is cannibalising the country’s future
Past efforts at fiscal consolidation have been wiped out, and political considerations have tied the hands of policymakers
It is impossible to overstate just what a disaster the new bailout for Eskom is for SA’s public finances — not to mention the public psyche. Despair is setting in at the size of the fiscal mountain SA must climb and the alarming absence of a detailed strategy to return Eskom and other bankrupt state-owned enterprises (SOEs) to financial viability.
Promises by previous finance ministers that in future SOEs would be financed in a “deficit-neutral” manner, through the sale of state assets and cash injections from strategic equity partners, were wishful thinking.