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SA will not be ‘held to ransom’ by Eskom says DA

Democratic Alliance (DA)  says it will oppose any further taxpayer-funded bailouts of Eskom should Finance Minister Enoch Gondongwana announce such measures in the Medium Term Budget Policy Statement in the near future.

In response to President Cyril Ramaphosa’s statement that National Treasury is working on Eskom’s sustainable debt solution, the DA  says it is opposed the bailout plan.

“A similar statement was made last year, which resulted in the state approving 59 billion over three years for Eskom through the Special Appropriation Bill. Furthermore, Eskom received R20 billion, over taxpayer-funded the main budget. Furthermore, in February 2022, it was announced Eskom would be given an additional R21,9-billion,” according to DA MP Ashor Sarupen.

Sarupen said the state created an untenable situation in which taxpayers have been forced to spend hard-earned money on Eskom mismanage

Consequently, Sarupen said South African citizens pay twice for energy, once for electricity and again for taxes.

In light of this, he said, the DA will vigorously oppose any planned bailout of Eskom.

Sarupen said that Eskom’s financial problems are the result of debt piled up by years of corruption and poor investments by the ANC, adding that the party’s position is that government should privatise generating capacity and stop bailing out Eskom.

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