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DA calls on Eskom to make terms of Chinese loan public

CAPE TOWN – The Democratic Alliance on Wednesday called on Eskom to make public the terms of its R33.4-billion loan from the China Development Bank.

“A loan of this magnitude, with more to come, must be as transparent as possible. This is especially important given that the taxpayer will most probably have to foot the bill when it is time to make repayments, with future electricity tariff hikes expected,” said Natasha Mazzone, the DA’s spokesperson for public enterprises.

“It is, for this reason, the DA will write to the chairperson of the Eskom Board, Jabu Mabuza, to request that Eskom make the terms of this loan public in the interest of openness and transparency.”

Mazzone said questions to Mabuza would include the repayment terms of the loan, the agreed interest rate and the guarantees provided to the bank.

She added that the loan would not solve all Eskom’s financing woes.

The power utility posted a loss of R2.3-billion for the 2017/18 financial year.

Reacting to the Eskom loan, Numsa said the parastatal can’t exist on bailouts forever.

The union says it’s presented a sustainability plan, that doesn’t include privatisation.

Numsa also reiterated that if bonuses aren’t paid, workers at the power utility will strike.

– Additional reporting eNCA

African News Agency

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