Loans – Eskom – SAA – Transnet – SOE


11 September 2018 – Ramaphosa will have the opportunity to provide more details around a R33.4bn Chinese state-owned bank loan to power utility Eskom on Tuesday afternoon when he answers questions in the National Council of Provinces.      Both loans are guaranteed by the SA state but their interest rates and the debt requirements have not been disclosed.

President Cyril Ramaphosa and Chinese President Xi


linked the $2.5 bn loan – worth R33.4 bn at the time – with the Chinese Development Bank in late July ahead of the 10th Brics Summit in Johannesburg.   The loan, which has a repayment period of 15 years, will be used for construction of Kusile power station.
Transnet concluded a separate R4 bn loan with the Industrial and Commercial Bank of China.


South Africans should insist on the publication of the terms of the loans granted to Eskom and Transnet this week by Chinese state banks, according to Mills Soko.   Soko, associate professor of International Political Economy at the UCT Graduate School of Business, admits he is a fan of the Asian superpower but criticised its lack of transparency.   Ahead of the 10th annual Brics summit this week, cash-strapped power utility Eskom signed a commercial loan agreement for R33bn with the China Development Bank, while Transnet received R4bn from the Industrial and Commercial Bank of China.


R25bn Chinese loan for Eskom could be tip of iceberg

Eskom, as is well-known by now, is struggling under a massive debt burden of R419 billion, declining revenue, aging plants and maintenance backlogs.  The inquiry into state capture this week has revealed how Eskom contravened its own internal processes when it accepted a dubious $2bn loan agreement from Chinese-based business Huarong Energy Africa.   The whole situation points to a shroud of secrecy that has covered the terms and conditions that were linked to the commercial loans within Eskom. We have asked parliamentary questions and submitted PAIAs to lift this veil of secrecy, with little success to date. This revelation proves to us that Singh’s attempt to slip through the R25 billion contract could be the tip of the iceberg.   The DA will continue to fight for transparency and will not accept clandestine loan agreement with China. This enchanting debt trap has allegedly already trapped other countries like Zambia.   Action be needed to reform the energy sector in South Africa before it’s too late. In this light, the DA proposes the following interventions which are immediately available to the President:


Big fight in parliament

2 gedagtes oor “Loans – Eskom – SAA – Transnet – SOE”

  1. […] to PIC Commission of Inquiry, 16 April 2019 *Conflict of interest – United Democratic Movement leader General Bantu Holomisa is back at the PIC commission of Inquiry being cross-examined by representatives of companies Harrith and Lebashe linked to former deputy Finance Minister and chair of PIC Jabu Moleketi, former PIC executive Tshepo Mahloele, and Warren Wheatly. In his testimony, Holomisa questioned conflict of interest with relation to former directors and employees of the PIC that seem to leave the PIC to build businesses funded by the PIC. Holomisa alleges there could be a cartel of BEE beneficiaries that seem to have easy access to PIC resources. BEE cartels * (Pension funds) Lebashe Investments Chairman, Tshepo Mahloele has come out with guns blazing, saying UDM leader Bantu Holomisa’s testimony is nonsensical.*Ramaphosa se vliegbemanningLoans – Eskom – SAA – Transnet – SOE […]


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