Mboweni announces plans to recapitalise SABC, Eskom and SAA

Tito Mboweni
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Finance Minister Tito Mboweni has announced plans to recapitalise the SABC, Eskom, Denel and South African Airways (SAA).

The Finance Minister made the announcement on Tuesday as he tabled the Special Appropriations Bill in the National Assembly.

Mboweni announced that Eskom will get R59 billion over the next two financial years and the SABC will get R3.2 billion.

“Once this bill is passed, we will be in a position to use Contingency Reserve Account to provide support to the SABC, to Denel, to South African Airways. But this support the SABC requests of R3.2 billion we will not make that just available tomorrow. It would be a mistake. We would release in chunks as certain conditions are met to make sure there’s progress in improving the organisation,” Mboweni explains.

The Finance Minister says he will announce the appointment of Chief Restructuring Officers for the entities on Wednesday.

The financial support measures will come from the Contingency Fund.

Meanwhile, the Democratic Alliance has indicated that it will approach courts over what it calls procedural irregularities in the Appropriation Bill.

The party claims that there were no consultations on the Special Appropriation Bill which requests nearly R6 billion for additional financial support for Eskom.

DA Chief Whip John Steeinhuisen says this is the third time that political parties have not been consulted.

ANC defends the process

The ANC has defended the process followed by Parliament to table the Special Appropriation Bill requesting a cash injection of nearly R60 billion for Eskom.

ANC Chief Whip Doris Dlakude says as this has been an election year, legislatures have been working around the clock to pass the budget within stipulated time.

“The DA has never raised any of what they’re raising on this podium today in any of our consultative structures, our internal structures. We have the Chief Whip forum where we consult each other.”