Municipalities and government departments owe Eskom R50 billion - Ramaphosa

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Eskom is coming for the R50 billion the South African government owes — Ramaphosa

South Africa has established a multi-disciplinary revenue committee to address municipal and government debt to Eskom — which currently sits at around R50 billion.

Eskom is part of the committee, and President Cyril Ramaphosa described the debts owed to the power utility as "unacceptable" while speaking to the National Assembly on Thursday, 3 November 2022.
 
Didn't the government just take over a load of Eskom debt?
So does the government now owe itself?
 
Pegasus said:
President Cyril Ramaphosa described the debts owed to the power utility as "unacceptable"

He always speaks as if he and the ANC had absolutely f all to do with the issue.
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100% this.

"Listen, we stole everything. And it is totally unacceptable."

And the voters keep voting for them. Jaaaaaaaaaaa ne.
 
OCP said:
of course - i just was wondering how the debt works when government owes Eskom but then took over debt...
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Pegasus said:
President Cyril Ramaphosa described the debts owed to the power utility as "unacceptable"
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But of course!

Cyril should gun all those white people who cannot have access to jobs or the economy due to AA and BEE for not paying their accounts.
 
Here is my plan for getting the debt paid.

1. all public servants working in finance or the executive in municipalities only get the percentage of their salary, proportional to their Eskom monthly usage bill + an instalment on a 60 month repayment plan, that is paid each month. 30% paid, 30% salary that month.
2. public servants company bank cards and vehicles become prepaid services, they only work if Eskom (and their other suppliers) are paid.
3. Should they fail to pay more than 50% of their monthly bill for 6 months in a row, Eskom takes ownership of the electricity infrastructure and billing to users.

That should get non-payers disconnected quite quickly and solve much of the political problems in the process as well.

You are not an employee when you are a public servant, you should not have BCE rights.
 
I love how they always use the term government will help with money like they make the money or work for it.

It would be nice just once saying the taxpayers will foot the bill (again)
 
President Cyril Ramaphosa described the debts owed to the power utility as "unacceptable"
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Hahahahahahahahahha.. what you going to do about it ? Nothing.
 
OCP said:
of course - i just was wondering how the debt works when government owes Eskom but then took over debt...
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Easy. It means that Eskom won't have it on their balance sheet, so they can start afresh making debt.

Government will get the PIC, who manages GEPF monies to loan it money to pay, the balance they'll issue government bonds at stupid rates.
If that is still not enough (they have to pay interests on those bonds and pension fund loans!) they'll find a way to dip into private sector pension funds as well.

Yep, we (tax payers and pensioners) will pay off the debt. dearly.
 
TIP to @Ramaphosa and @Godongwana

According to:
mybroadband.co.za

Big bailout for Eskom’s R400-billion debt

Godongwana said the plan to take over a significant portion of the utility’s debt sought to ensure Eskom’s long-term financial viability, something which repeated bailouts over the past decade have failed to achieve.
mybroadband.co.za mybroadband.co.za
The government is anticipated to take over between R100 billion and R300 billion of Eskom debt.
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Government Taxpayers are going to give Eskom ~R200b...

Why don't ZA give R50b of this to the defaulting metros (+ Soweto) for them pay their debt to Eskom.
  1. Eskom will still receive their R50b (indirect) + (R150b direct)
  2. Metro's (+Soweto) will be debt free.
  3. Eskom will be in a good financial position as it has received R200b
  4. Metros will be in a good financial position as they will be debt free.
Two wins with one payment.

A win-win situation.
 
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OCP said:
of course - i just was wondering how the debt works when government owes Eskom but then took over debt...
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Local, Provincial and National Government, and all departments are juristic persons (you can check on the CIPC website) - if they weren't they would not have been able to own bank accounts.

National gave ESKOM a bailout, but various Local Governments (municipalities) still owe it.

Local gets an annual budget from Provincial which gets a budget from National.

Local gets electricity from ESKOM to resell. What happens is some LG's do not pass back ESKOM's portion. They pocket the whole amount!
 
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