Question NW162 to the Minister of Finance
24 July 2019 - NW162
Lees, Mr RA to ask the Minister of Finance
(1) What are the relevant details of any funding paid by the National Treasury from the Government to Eskom from 1 January 2019 to 30 June 2019; (2) what are the relevant details of any envisaged payments by the Government to Eskom from 1 July 2019 to 31 March 2020; (3) whether the National Treasury issued any letters of commitment in favour of Eskom to assist Eskom to raise loans from lenders from 1 January 2019 to 30 June 2019; if so, what are the relevant details; (4) what are the details of any envisaged letters of commitment to be issued in favour of Eskom for the purpose of obtaining loans from lenders from 1 July 2019 to 31 March 2020?
Reply:
1. By 30 April 2019, National Treasury transferred a total of R13.5 billion to Eskom of the R17.652 billion that was approved by the Minister of Finance through invoking Section 16 of the Public Finance Management Act (PFMA).
2. Government acknowledges that the R23 billion for 2019/2020 will not be sufficient and is thus tabling a Special Appropriation Bill to Parliament for urgent consideration and approval.
3. Given the strategic role that Eskom plays in pursuit of governments objectives, the Minister of Finance announced that government has committed to set aside R23 billion per year over the next 3 years to financially support Eskom. Moreover, beyond MTEF the current fiscal planning includes R23 billion per year to support Eskom over the next 10 years, with the total accumulated support amounting to R230 billion or R150 billion in net present value terms.
4. None.