ANC treasurer-general Paul Mashatile, the previous chairman of the parliamentary standing committee on appropriations, under whose watch a Treasury loan to Eskom of R60bn was converted into equity during 2016, seems determined to keep the lights burning at Eskom using other people’s money. He has announced that discussions are under way to convert a loan by the Public Investment Corporation (PIC) to Eskom of about R120bn into equity. The previous conversion deprived the taxpayer of about R80bn in interest over the original 30-year life of the loan. It is estimated that the latest proposal will deprive potential public service pensioners of double that sum. As a state-owned enterprise (SOE), the state is Eskom’s only shareholder. To proceed with the conversion to equity of a loan by another SOE would mean the PIC would become a part-owner of Eskom. Given Eskom’s abject failure at managing its own funds and operations, this move spells disaster as an investment by the PIC. The DA will...
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