Cape Town – The Eskom Debt Relief Bill has been officially passed.
This comes after the National Council of Provinces (NCOP) voted in favour of the passing of the bill on Wednesday, EWN reported.
The bill involves the National Revenue Fund providing debt relief of R254 billion to Eskom,over the next three years.
The bill, proposed by Finance Minister Enoch Godongwana, will transfer over half of Eskom’s R400 billion debt to the National Treasury.
Finance Minister Enoch Godongwana presented the Bill during his Budget Speech in February.
The bill is widely regarded as an essential measure aimed at addressing the financial and operational difficulties faced by Eskom.
ALSO READ | Parliament passes R254bn Eskom Debt Relief Bill
According to IOL, the Treasury says the Bill reflects the government’s dedication to assisting Eskom in managing its debt responsibilities and the accompanying financial expenses.
However, critics of the bill argue that it will not solve the energy crisis in the country.
Some economists believe that the passing of the bill, along with recent wage increases for non-managerial employees, indicate that Eskom is moving closer to privatisation, the report said.
“This is just one of those small steps of something that’s going to happen in any event. We simply need to look at South African Airways to know what is going to happen to Eskom.
“We just have to look at what’s happening to the SA Post Office to know what’s going to happen to Eskom – and the answer is that Eskom is going to come to an end, exactly the same as many of these state-owned enterprises,” EWN quoted economist Dawie Roodt as saying.
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Compiled by Betha Madhomu
