Parliament, Wednesday, 11 September 2019 –The Standing and Select Committees on Appropriations today concluded its public hearings on the Special Appropriation Bill.
The Organisation Undoing Tax Abuse (OUTA) raised concerns about the accuracy of the cost-to-completion figures for Medupi and Kusile power stations estimated at R145 billion and R161 billion, respectively. This is definitely far above what was initially budgeted for. If not contained, it will lead to a debt explosion for both Eskom and the government.
The Congress of South African Trade Unions (Cosatu) emphasised the importance of Eskom for the socio-economic development of the country and said it, therefore, needs to be saved. However, it stressed that this should be accompanied by very stringent conditions by both the executive and Parliament.
The Alternative Information and Development Centre (AIDC) also agrees that Eskom is too important for the economy of the country and it must be recapitalised. It is arguing that alternative methods of funding Eskom should be explored. It particularly recommended that the Government Employees Pension Fund (GEPF) and other pension funds be considered. It also argued that the emphasis should be on the socio-economic return to the country, rather than purely profit maximisation. This approach will protect the national fiscus.
The committee shared the view that the unintended consequences of the Eskom challenge is uniting stakeholders from various platforms. It brings everyone to the agreement that, among other things, Eskom cannot be handed a blank cheque. It said the new turnaround strategy for Eskom needs close scrutiny to ensure both short- and long-term solutions are embedded therein, and the sixth Parliament needs to ensure vigorous oversight to ensure that the new plan does not fail.
The committee appreciates the submission received from civil society and their representatives. This further proves that the country’s democracy is a participatory one and highlights the importance of the views of the public.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSONS OF THE STANDING AND SELECT COMMITTEES ON APPROPRIATIONS, MR Sfiso Buthelezi AND MS DIKELEDI MAHLANGU.
For media enquiries or interviews with the Chairpersons, please contact the Committee’s Media Officer:
Name: Felicia Lombard
Parliamentary Communication Services
Tel: 021 403 8285
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E-mail: flombard@parliament.gov.za
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