Troubled power utility Eskom will get an additional R69 billion from the state over the next three years to help it service its debt, Finance Minister Tito Mboweni announced in the 2019 national budget on Wednesday.
"We are setting aside R23 billion a year to financially support Eskom during its reconfiguration," the minister said.
He said the government was not taking over Eskom's debt, and the cash injections would go hand in hand with the restructuring of the utility into three independent components.
A chief reorganisation officer would be appointed by himself and Public Enterprises Minister Pravin Gordhan to implement the unbundling of the company.
"Pouring money directly into Eskom in its current form is like pouring money into a sieve," Mboweni stressed.
- African News Agency (ANA)
