CORRUPT ESCOM BORROWS ANOTHER R 33 BILLION FROM CHINA ……AT THE TAXPAYERS COST

 

 

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Article posted  by: White Nation correspondent Pretoria 25  July  2018

 

 

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WARNING- SHOCKING NEWS  -NOT FOR SENSITIVE TAX PAYERS.

 

 

SOUTH AFRICA– THE GLOBALIST’s  COMMUNIST WASTELAND DOWN SOUTH

 

 

SOUTH AFRICA is getting down to the business of fixing its debt-ridden state power utility by borrowing MORE money for a utility that already proof to be a dead beat money sucking vacuum cleaner….at the tax payer’s cost-that is! Instead of firing the whole caboodle incompetent fools in Eskom’s management- the chaotic ANC simply keeps on funding this financial cancer together with the SAA, Post Office, ANCBC and Transnet….out of the tax payers pockets!

Eskom had R399 billion of debt at the end of March, according to Bloomberg data, and has been flagged by ratings companies as a key risk to South Africa’s economy. The utility has been mired in a series of scandals, struggled to raise funds and was forced to implement rolling blackouts last month after wage talks with unions broke down. Eskom announced Tuesday it’s secured a $2.5 billion long-term loan facility from China Development Bank, giving a big boost to its fundraising efforts this year. About an hour later, a top official in the ruling African National Chaos  told reporters the Public Investment Corporation is in talks about converting part of the debt it is owed by the state power utility into equity. “We’re seeing sufficient signs that management at Eskom cares about dealing with the problem and we’re seeing progress,” said Darias Jonker, an Africa analyst at risk-advisory firm Eurasia Group. The moves are “a sufficient encouragement that Eskom is too big to fail and that a default is unlikely,” he said.

The CDB loan was announced as part of a series of investments by China in South Africa after a meeting between  Cyril Ramaphosa and his Chinese counterpart, Xi Jinping, in Pretoria. The facility takes Eskom’s secured funding to more than 60% of requirements for this year, Chief Executive Officer Phakamani Hadebe said. Yields on Eskom dollar bonds due 2021 dropped 18 basis points to 6.83%. Also on Tuesday, Paul Mashatile, the ANC treasurer-general, said that the party favors splitting Eskom into three parts — electricity production, transmission and distribution. “The company would become more manageable” if it were broken up, he told the Cape Town Press Club. “Now it is an elephant that is too big to walk.” Mashatile also revealed that the PIC, which oversees South African government workers’ pensions, is in talks with the government and Eskom about converting part of the about R100 billion of the company’s debt it owns into equity. The move would support Eskom’s balance sheet and allow it to raise more money, he said.

Proper consultation

The process of developing a new business model is work in progress,” public enterprises minister Pravin Gordhan said. “There is no doubt that both financial and structural measures will be required to make Eskom sustainable. There will be proper consultation with all stakeholders.” Eskom’s debt is projected to increase to R600 billion within four years, the company said on Monday. It reported a loss of R2.3 billion for the year through March and said it discovered R19.6 billion in irregular costs, a liability largely inherited from previous leadership. The utility is also still in wage negotiations with unions, after backing down on a refusal to offer pay increases following last month’s protests. While the latest announcements show a determination to tackle Eskom’s problems, there’s still a long way to go, said Eurasia’s Jonker. “Stabilising Eskom is still very far from being realised,” he said.  Even after this loan, Eskom still needs to find a third of its funding requirements for the year from somewhere. Eskom relies on Government guarantees to service its debt of about R368 billion. 

The Money Show’s Bruce Whitfield interviews Dr Iraj Abedian, CEO at Pan-African Investments and Research Services.

Typically, the Chinese have a geopolitical approach… it could well be a package of Ts and Cs…,” says Abedian. “This is invaluable… provided Eskom uses this to turn the business around… Eskom has zero margin for either business mistakes or any kind of misconduct that we have seen in the past.” Eskom relies on Government guarantees (Tax Payer’s money) to service its debt of about R368 billion. Now the million dollar question is what’s the difference if the PIC become the equity holder, still taxpayer’s money will be holding the same “dead” asset? Economics 101 and Business Management 101 are still a major hurdle to the corrupt Eskom and ANC  chaotic incompetent management.

And yet they want to continue managing finances of this magnitude? Well- we know why, don’t we!!?? Lining the pockets of corrupt ANC “high-ups” and exploiting the 5 government non-functional Stooges to launder  billions of rands  keeps them “struggling ” for survival year after year. They “struggle”  for a specific reason. The more they “struggle” – the more  the ANC rats keep on pumping tax payers’ money into them. The more money they pump in- the more comes out to  their pockets through scrupulous “service providers” and “tenders” on the other side. This facade is being going on for decades now. Why still paying tax- are we stupid by natural choice? 

 

 

SOURCES:

 

https://www.moneyweb.co.za/news/south-africa/fixes-to-elephant-eskom-span-china-loan-to-debt-swap/

https://www.msn.com/en-za/money/news/eskom-borrows-r334-billion-from-china-backed-fully-by-you-the-taxpayer/ar-AAAmjSl?li=AAaxc0E&ocid=ientp

 

 

 

 

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