The Public Service Association (PSA) says it’s unhappy with the announcement that the Public Investment Corporation (PIC) will grant Eskom a short term loan for R5 billion, as announced on Monday, while the Congress of South African Trade Unions (Cosatu) differs with the PSA and supports the R5 billion lifeline to Eskom, but with conditions.
The PSA says the parties that agreed to this went back on an agreement that the PIC should not bailout any State owned enterprises (SOEs) until it can be ascertained that governance is in place. It also says parliament had previously indicated that the PIC is already overexposed and not in a position to give out such amounts.
“We cannot continuously have SOEs being charity cases of the PIC, and the mere fact that PIC is already overexposed as far as the investments in these SOEs. Eskom already owes PIC over a R100 billion plus this R5 billion and when we want it back Eskom will not be able to pay it back,” says PSA deputy General Manager Tahir Maepa.
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