Posts tagged with 'bailout'

 

State-owned bus company seeks R350 million bailout

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The state-owned bus company Northwest Transport Investments, which transports more than a million people a day, is seeking a bailout of R350 million.

The transportation of hundreds of thousands of commuters mainly in the North West and Gauteng provinces and more than 1,600 jobs are at risk due to the financial distress of parastatal Northwest Transport Investments (NTI).

The 46-year-old company – which owns Northwest Star, the Star Line, and the Atteridgeville Bus Service – has applied to the North West government (its sole shareholder) for a bailout of more than R350 million, NTI chairman, Mojalefa Nale, confirmed to Business Insider SA. The company has outstanding debts of about equal to that amount.

In August, a high court judge placed the company into provisional liquidation, after an application from Driveshaft Baleka, which is a Pretoria-based company that rebuilds and manufacturers propeller shafts.

It was owed R890,000 by NTI, which Nale says th
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59 billion bailout just been granted to struggling Eskom

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The National Assembly voted in favor of a special allocation bill on Tuesday that allows a bailout of R59 billion to struggling Eskom.

The bill was approved by 200 votes to 105 with ANC MPs believing the bill is essential to keep the lights on. These MPs argued that many of them grew up in a “permanent state of loadshedding” due to past inequalities.

Others, however, were opposed to this bill.

Nqabayomzi Kwankwa, MP of the United Democratic Movement (UDM), said it was astonishing that MPs were asked to “throw money at the problem” after Eskom reportedly paid R4bn to suppliers too much.

Eskom is about R500bn in the red.

DA Ashor Sarupen said Eskom seems to be burning money instead of coal. “Every citizen is a hostage of Eskom. We are hostages to the power cuts that cause huge economic losses. We are hostages to their bail requirements. We are hostages to their endless management crises, ”says Sarupen.

Wouter Wessels, FF Plus MP and chief spokespers
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ANC regime just cant resist the old folks money – State still wants to use pensioners funds as a bailout for bankrupt SOE’s

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The PIC group announced that they will meet in November to consider options to help the bankrupt state entity Eskom with its debt. Pensioners were given the assurance that the value of pensions would not be “wasted”.

PIC already carries almost R90 billion of Eskom’s debt and more than one million public servants’ pension is currently handled by PIC.

Economists agree that further financial advances to the power provider will not save the entity from its plight.

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Eskom – in return for R59bn bailout from National Treasury, Eskom must recover Soweto, municipal debt

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National Treasury is set to impose 28 conditions on Eskom in return for a R59bn lifeline to keep the cash-strapped power utility afloat and enable it to pay interest on its mounting debt burden.

Treasury updated Parliament’s appropriations oversight committee on the conditions attached to an appropriations bill on Wednesday. The bill, which has not yet been passed by Parliament, grants R59bn to Eskom over two years. This is in addition to R69bn over three years announced by Finance Minister Tito Mboweni in his maiden February budget.

In addition to regular and detailed reports of all its finances, Treasury has stipulated the utility needs to recover all debt owed to it by errant municipalities, national department and corporations, including Soweto.

“Eskom cannot provide electricity and not collect debt,” Treasury’s acting director-general of the assets and Liabilities Tshepiso Moahloli told MPs. “Members, we know that between Soweto and municipalities –
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Bankrupt SABC gets R2.1 billion bailout to continue mismanagement, CEO receives excessive amount of R3.9 million for 9 months of work

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Communications Minister Stella Ndabeni Abrahams has just announced that the SABC will receive R2.1bn as part of a R3.2bn bailout. The ANC regime is pumping billions of rand into the ineffective SOE and has now been warned that no further aid will be provided.

The struggling national broadcaster once again got money from the state coffers to continue its mismanagement. However, the government apparently set strict conditions before the money was released. The conditions include that the public broadcaster must present a list of identified initiatives to improve its inputs, submit ideas to save costs as well as conduct a thorough investigation into the cause of its financial collapse and a separate financial reporting for providing public and commercial broadcasting services. Abrahams says that the SABC currently meets most of the conditions set by the government.

Meanwhile, experts say that the SABC should first get rid of its weakest divisions, but its sale will
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State Treasury plundering continues – your tax money will fund Eskom with a further R59bn

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Eskom will receive a further R59bn bailout over two years from the government to keep the bankrupt power provider standing.

This follows the R69 billion already approved for a three-year period. Eskom’s debt currently amounts to R440bn and is considered the biggest risk to the South African economy.

How much money is still to be deposited in the entity is not known, but economic experts agree that Eskom will never get rid of the debt itself.

-Vryburger / 2019-07-23
This report does not necessarily reflects the opinion of SA-news.

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Parasitic Parastatal Eskom, paralysing SA as the country runs out of money. Unless considered action is taken, not just talk – South Africa remains on the brink of destruction

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When Finance Minister Tito Mboweni on Tuesday told MPs government would have to review its funding requirements, he put into financial jargon that, actually, South Africa’s running out of money. And Eskom is to blame, in the main.

Bluntly put, Tuesday’s Special Appropriation Bill is scraping together R59-billion extra for Eskom — that’s in addition to the R23-billion a year already announced in February’s Budget — to ensure the power utility keeps its lights on.

The bailout timing is crucial — a week to the day before Eskom releases its financial results. Twice delayed already, it’s now on public record the power utility wasn’t a going concern; effectively bankrupt, it can’t meet its obligations under its own steam. The Special Appropriation Bill’s proposed R59-billion bailout over two years has ensured the auditors, on the back of such an official guarantee, can now sign off on the Eskom financials.

“Eskom’s funding pl
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Cash strapped Denel asks ANC regime for cash injection of R2.8 billion to pay employees salaries and remuneration

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Weapon manufacturer Denel is one of several state-owned enterprises (SOEs) found amid allegations of corruption and statecapture. The entity finds itself in a deep financial crisis and was forced to ask government for a R2.8 billion bailout to pay suppliers and outstanding salaries.

Public Enterprises Minister Pravin Gordhan announced that the company, with the help of a lender, made it possible to pay salaries for the month of June. Meanwhile, it has come to light that although staff salaries have been paid, no pension contributions where paid. Unconfirmed reports say Denel will again struggle in late July to compensate his staff.

Denel CEO Danie du Toit indicated stated that Denel is in negotiating with the banks to obtain bridging finance and has apologized for the tension and anxiety it causes among staff and their families. Since Denel failed to pay its employees ‘salaries in full, staff have been showing a negative attitude towards the comp
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Government employees face 10% salary cut to fund crippling Eskom since National Treasury’s box is empty

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National Treasury director-general Dondo Mogajane has said that the best way to fund the bailout of failing state-owned enterprises could be to cut the salaries of all government employees by 10%, according to a report in the City Press.

The government has to find a way to close a R120-billion hole in its budget, which is the result of acceding to a R59-billion bailout for Eskom as well as a shortfall in tax revenue for the fiscal year ended March 2020.

“National Treasury’s box is empty,” Mogajane said to the City Press.

“Growth is not coming through and tax revenues are not there. We are in trouble. The government needs to reduce spending.”

“If we are going to be serious – without people losing their jobs – let us reduce the salaries and stop the bonuses,” Mogajane said.

In response to this plan, unions said that they would not accept the revocation of bonuses and salary cuts for their workers.

“Any talk
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South Africa Considers Handouts To Help Zimbabwe With Trouble Caused By… Handouts!

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The spiraling economic meltdown in Zimbabwe has prompted South African authorities to think about extending short-term credit to Harare and helping it to write off a $7.4-billion external debt.

In an interview with the Daily Maverick newspaper, South African Finance Minister Tito Mboweni said the two governments were discussing ways to settle Zimbabwe’s debt to the IMF, the World Bank and the Paris Club.

The sides were also weighing up the possibility of extending an existing credit facility which Zimbabwe had with the South African Reserve Bank.

Zimbabwe had previously provided collateral for the loan in the form of its holding of SA Land Bank bills, the minister said, noting the country had always repaid its loans under that facility in the past.

Experts say Harare is clearly desperate for a bailout from South Africa and/or any of its other allies to resolve an economic crisis which is slipping out of control.

Thousands of Zimb
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