Mboweni: Eskom, Denel, SAA and SABC will be rescued
Finance Minister Tito Mboweni has confirmed power utility Eskom, arms manufacturer Denel, national carrier South African Airways and public broadcaster SABC will receive monetary support from government.
“I must emphasise that this additional government support cannot be a blank cheque to these state-owned enterprises. We really and truly cannot go on like this,” said Mboweni during a vote on National Treasury’s budget on Thursday.
The Appropriation Bill, which will pave the way for the cash-strapped state-owned entities to receive a cash injection, is expected to be tabled in the National Assembly on July 23.
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Mboweni says the legislation will give additional support to the struggling SOEs for the current and next financial year.
The bill will establish a contingency reserve account which will fund the beleaguered companies.
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“Giving the high risks to the economy of a systemic failure if Eskom had to collapse, government is urgently working on stabilising the entity.”