COSATU welcomes the National Assembly’s passage of the Eskom Debt Relief Bill
26 May 2023
The Congress of South African Trade Unions (COSATU) welcomes the National Assembly’s passage of the Eskom Debt Relief Bill.
COSATU welcomes Eskom Debt Relief Bill overall and supports its passage by Parliament. The Federation has long championed the need for the Fiscus to take over Eskom’s unsustainable debt levels as part of a package of measures to enable Eskom to be stabilized, rebuilt and play the role it is meant to in the economy.
Eskom is the nation’s most important economic asset. It generates 95% of electricity and transmits and distributes 100%. The entire economy, including all jobs and the ability of workers to earn a salary and take care of their families depends upon a functioning and modern Eskom. In simple words, Eskom is too big to fail.
Eskom for a variety of reasons has incurred debts it cannot afford to pay. Some of this is due to rampant theft and corruption, in particular at Medupi and Kusile. Some are due to mismanagement, institutional neglect and a lack of investment. Others are due to aging infrastructure. Others are due to rising levels of debts owed to Eskom by municipalities, businesses, communities and even government entities.