Amid confirmation that Eskom is technically insolvent and will require a capital injection by April to remain a going concern, a leading economist is cautioning against the proposed transfer of R100-billion of the utility’s debt to government’s balance sheet. Instead, Standard Bank chief economist Goolam Ballim is proposing that government commits to taking over some of Eskom’s debt-servicing costs for a period of two years to allow the utility space to implement a “credible turnaround plan”.
