Cape Town- The Standing Committee on Appropriations held a joint meeting with the Select Committee on Appropriations to discuss the Eskom Special Appropriation Bill and the Eskom Subordinated Loan Special Appropriation Amendment Bill for the financial year of 2008/09-2010/11.
Members of the Committees proposed that the Bill be supported.
The Committees said South Africa was a developmental state, as such parliamentarians had a responsibility to intervene and that the state intervention was needed within Eskom.
The collapse of Eskom could not be allowed. The Committees were of the view that the assistance extended to Eskom should be followed by accountability. The Committees indicated that they would like to know on an ongoing basis how the improvement of a balance sheet was being converted into service delivery.
“The Committees expressed a concern over the conversion of a full R60 billion which was being reflected as equity. Briefing the Committees, National Treasury said Eskom debt would be reduced by R24.4bn while simultaneously increasing the equity by the same amount,” Parliament spokesperson, Yoliswa Landu said.
Landu said the conversion to equity was part of the subordinated loan which was one of the interventions that formed pack of the support package for Eskom.
The Committees said it was important that the money that was being appropriated should be used for its purposes and in a proper manner.
Members of the Committees called upon National Treasury to ensure that the process of converting loans into equity is transparent.
The Committees questioned the issue of equity by inquiring the amount of shares that had been issued and the cost of shares and what percentage of equity would government receive.
“Furthermore, members inquired if dividends from the equity that would be received. The Committees will monitor how Eskom is going to spend these funds and ensure a sustainable energy generation in South Africa,” she said.
Chairperson of the Standing Committee on Appropriations, Paul Mashatile, said: “We support the need to assist Eskom. There is a need to get Eskom working and these measures of making Eskom to work are very important. But we want to deal with details and how do we make sure that the money that is going to be made available is going to assist Eskom.”
The Joint Committees have invited the Department of Public Enterprises and Eskom to appear on Friday to present their plans on how to address problems at Eskom.
(Edited By Obakeng Maje)
-TDN
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