SUNDAY TIMES - SA to pay R5 billion Eskom bailout funds
Sunday Times Business By Andre Janse van Vuuren, 2016-02-26 10:41:36.0

SA to pay R5 billion Eskom bailout funds

Electricity pylons are seen near Arnot Power Station's cooling towers, east of Middelburg in Mpumalanga province, September 8 2015.
Image: Reuters/Siphiwe Sibeko

Government will hand over R5 billion to Eskom as the final payment of a capital injection into the state-owned power utility, the National Treasury said just days after Finance Minister Pravin Gordhan announced that it will withhold the funds.

“Treasury is working on a process to have the R5 billion transferred next week,” Phumza Macanda, a Treasury spokeswoman, said in a text message.

Gordhan said on Wednesday the government will postpone the last payment of a 23 billion-rand bailout for Eskom until the utility implemented further cost cuts, improved maintenance and executed its capital-expenditure program. The funding was promised in 2014 as a rescue package for the company, which has been struggling to fund new plants while suffering breakdowns at its aging operations, prompting frequent power cuts in 2015.

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