Eskom handed R59 billion lifeline
Finance minister Tito Mboweni has tabled a Special Appropriations Bill to provide an additional R59 billion to Eskom to help the power utility meet its financial obligations.
The special funding bill was tabled in the National Assembly on Tuesday morning.
Eskom will require R26 billion for the rest of this year and R33 billion for the 2020/2021 financial year.
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This is on top of the R69 billion that the utility was allocated in the national budget in February - bringing it to a total of R128 billion.
Mboweni warned MPs that the sustainability of the state-owned entity needs urgent attention.
"I stated before during my budget vote that Eskom presents the biggest risk to the financial fiscal framework because of its financial difficulties and its negative impact on the lives of ordinary South Africans.
"Given the risks to the economy of the systemic failure, if Eskom were to collapse, the government is working urgently to stabilise the institution while developing a broad strategy for its future"
However, energy expert Ted Blom says throwing money at Eskom will not solve the crisis.
"It doesn't seem to me what is required to solve the problem at Eskom. Without fixing up Eskom at its core, it's just about throwing more good money after bad and it is not bringing up the desired results.
"This could be the first of much money that will still need to go into the organisation just to keep it alive, standing still."