FILE PHOTO: An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton, February 24, 2016. REUTERS/Siphiwe Sibeko
JOHANNESBURG - South Africa’s finance ministry authorized the transfer of 5 billion rand to struggling state power firm Eskom on April 2 “to avert a default by Eskom on its obligations,” according to a finance ministry report to parliament seen by Reuters. The 5 billion rand transfer falls within the 23 billion rand a year bailout the South African has government has agreed to give Eskom over the next three years.
The finance ministry report, dated April 16 and signed by Finance Minister Tito Mboweni, also said Eskom could need another tranche of government money before the end of the month.
The state largest energy utility to supply the electricity to South Africa could go into such financial downturn ? Big debt to past investment or logistcal problem ?