logo |

News

    Home   >     Industry    >     Main body

    Eskom Pact Wont Include Pledge to Use State Worker Pensions

    Abstract:A pact between South Africa‘s government, labor unions and business to cut the debt of the stricken national power utility won’t include a pledge to use the pensions of state workers as had been initially proposed.

      LISTEN TO ARTICLE

      1:34

      SHARE THIS ARTICLE

      Share

      Tweet

      Post

      Email

      Photographer: Waldo Swiegers/Bloomberg

      Photographer: Waldo Swiegers/Bloomberg

      Sign up to our Next Africa newsletter and follow Bloomberg Africa on Twitter

      A pact between South Africa‘s government, labor unions and business to cut the debt of the stricken national power utility won’t include a pledge to use the pensions of state workers as had been initially proposed.

      An agreement due to be signed at the next meeting of the President‘s Working Council has no firm undertaking to use the funds of the 2.1 trillion rand ($120 billion) Public Investment Corp., which manages state workers’ retirement money, or private pensions, said Cas Coovadia, the chief executive officer of lobby group Business Unity South Africa. Coovadia spoke in an online briefing with Bloomberg.

      The Congress of South African Trade Unions proposed in December that funds from the PIC and the Development Bank of Southern Africa, a state lender, be used to cut Eskom Holdings SOC Ltd.s debt to about 200 billion rand. The utility currently has a debt burden of about 480 billion rand.

      “We just said all possible public and private financial support for Eskom and to reduce its debt must be mobilized,” said Matthew Parks, parliamentary coordinator of Cosatu, which is a member of the countrys ruling coalition. “We kept it high level.”

      A date for the meeting where the accord will be signed hasnt been set. It was due to take place on Aug. 3 but was delayed.

      Cosatu‘s initial proposal raised concerns that pension funds could be forced to invest in Eskom through the use of so-called prescribed assets. Business leaders, including Coovadia, have said while private investors are willing to invest in state companies and infrastructure, they don’t want to be compelled or directed to, and must earn an acceptable return on investment.

      {21}

      — With assistance by Prinesha Naidoo, Monique Vanek, Gordon Bell, and John McCorry

      {21}

    Latest News

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.