Budget Speech 2020: Mboweni says using pension funds to cut Eskom debt ‘not a bad idea’

Parliament  – Finance Minister Tito Mboweni on Wednesday said using pension fund savings administered by the Public Investment Corporation to slash state power utility Eskom’s debt – as proposed by labour federation Cosatu – was not a bad idea to convert savings into equity, but added the measure should apply to the private sphere as well if implemented.

“It is not a bad idea actually but we must be very careful that we are not suggesting only public service workers pensions are to be used,” he told a media briefing before tabling the 2020 national budget in Parliament.

“It must not be about the public service pension but all pensions.”

Mboweni then appeared to turn the debate about shoring up Eskom back on the trade union movement by mooting more private sector involvement in the power utility, a sticking point for the Congress of South African Trade Unions, a key government ally.

“We are now at the idea that there can be private participation in Eskom and I think other ministers can look into that,” he said.