PHUTI MOSOMANE
FINANCE Minister Minister Enoch Godongwana says government is not going to bailout the cash-strapped power utility Eskom despite its worsening challenges.
The power utility had earlier put in a request to National Treasury for R19.5 billion to purchase more diesel.
Godongwana said government doesn’t have the money to assist Eskom with the purchase of diesel.
Although Eskom did not apply for funding through the budget process, Godongwana said Eskom management should take all the necessary steps to ensure that the power utility secures the diesel needed to avert severe loadshedding.
“We are aware of the impact that Eskom’s diesel shortages may have on already severe levels of load shedding,” Godongwana said.
“Between 2019 to date, we spent R230bn on Eskom.”
Godongwana was speaking at the ANC’s Progressive Forum Breakfast (PBF) breakfast held in Nasrec, south of Johannesburg.
He conceded that government dropped the ball by concentrating on fixing Eskom rather than concentrating on power to the grid.
Godongwana said crime and corruption was also the biggest problem that is affecting both Eskom and Transnet.
“When it comes to infrastructure spending, R247bn is spent by municipalities, R63bn province, R73bn SOE and the rest is with the national government,” he said.
The minister said government has since announced that there would be no more bailout of state-owned enterprises (SOEs).
Eskom said South Africans can anticipate the increased risk of loadshedding until these problems are resolved over the next six to 12 months.
To limit the stages of loadshedding, Eskom has to heavily rely on the extensive use of open-cycle gas turbines (OCGTs), and millions of litres of diesel.
The company has already burnt R12bn of diesel in this financial year.
Recently, two security guards at an East London power station were arrested for stealing 5 863 litres of diesel.
Eskom has been complaining about acts of sabotage, including crime and acts of criminality.
On Saturday, President Cyril Ramaphosa authorized the deployment of soldiers to Eskom power stations.
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