IMF loan for Eskom a pact with devil: Cyril

Deputy President Cyril Ramaphosa says seeking a loan from the IMF to rescue Eskom is akin to a Faustian bargain and must not be considered if it can be avoided.

He said it was best to continue with the current processes to get the power utility on the mend, including the state capture inquiry and giving the parastatal much-needed leadership to improve its financial management.

Eskom has been highlighted by economists as the single biggest risk to South Africa's economic stability and is a huge part of the reason why S&P recently downgraded the economic outlook of the economy.

When asked whether South Africa should consider approaching the IMF for assistance in helping Eskom, Ramaphosa said work was being done to get Eskom on the mend.

"You could say that the Eskom situation is a perfect storm. The downgrading is based on issues of governance and stability. Are those things that can be fixed? Most certainly so," said Ramaphosa.

He said that, given the issues of financial management and financial stability, he could not possibly imagine things getting any worse.

"Once we go to the IMF we would sacrifice our independence in terms of the economic management of our country as well as our sovereignty. The most important thing is to secure economic independence."

"Our sovereignty is of paramount importance. We cannot sacrifice that because of an entity like Eskom. We have to fix Eskom to ensure that we remain sovereign. Yes, Eskom has suffered over the years, but it has gone down and cannot go much further," he said.
- BusinessLIVE