Mixed reaction to Eskom bailout
Various organisations and political parties have condemned the decision by the Public investment Corporation (PIC) to loan Eskom R5 billion, while others believe it's the only way of restoring confidence in Eskom.
The PIC announced on Tuesday that it has reached an agreement with the cash-strapped utility to use the funds to cover operational costs for the month.
Eskom is experiencing enormous liquidity constraints.
The Congress of South African Trade Unions (COSATU) believes the lifeline will "restore good corporate governance and cleaning up the mess and the rot at Eskom".
But National Education, Health and Allied Workers' Union (NEHAWU) has expressed shock at the PIC's decision.
"For some time the power utility was used as a cash cow by the Guptas and their golden boy Brian Molefe. Our view is that no bailout must be given to Eskom until the tentacles of the Guptas have been totally removed," the union says.
The Democratic Alliance (DA) has labelled the bailout as "not only outrageous but a reckless gamble with pension money for government employees".
"Government cannot raid the PIC to plug the financial holes that failing State Owned Enterprises continue digging for themselves due to corruption and poor corporate governance," says the DA's Alf Lees.
Releasing its interim results last week, the power utility revealed it would need a total of R20 billion to keep going and in debt to the tune of almost R500 billion.