Eskom must ensure govt funds are used productively - Godongwana

Godongwana addressed a post-budget breakfast on the SABC following his maiden budget speech on Wednesday afternoon.

Godongwana acknowledged that the power utility’s massive debts remain a concern for both creditors and Investors.

To date, Eskom has been provided with R136 billion to pay off its debt with a further R88 billion to be given to the utility until 2025/26.

The utility’s debt stands at about R400 billion.

Godongwana says National Treasury is working on a solution to ensure that the money is used fairly.

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“We have not only given Eskom R136 billion, that one they have taken but there is also R88 billion still coming, the question is what are we going to do to make sure that Eskom uses this money productively, we don’t have load-shedding and a whole lot of issues.

“It is a discussion we are having with the people who are responsible for running Eskom, that it’s important that the money we get to Eskom, we must realize value from it.”

He acknowledges the utility’s debt continues to impact the economy.

“The CSIR has done some studies of how much damage to the economy load shedding has done and it's over R300 million and 35% was only last year, so something needs to be done in making sure that Eskom do the right thing, we need to make sure that there are other players in the system, in the absence of that we will forever be held ransom by Eskom.”