Sunday , August 7 2022

No one would buy Eskom, even if it's selling for R1 – Ieading Economist


pylons, eskom, electricity

. ~ iStock

The debate about Eskom's privatization is "myth", according to the economist Dr Iraj Abedian, who says that he has not met one investor who would buy assets and power – even if they were are sold "for an edge".

"There is nothing in Eskom that any private, sensible buyer would want to buy, talking about privatization.

"What do you smoke?" Abedian asked for a panel discussion on the budget speech in Cape Town on Friday.

Trade unions object to the separation of Eskom into three separate entities as part of the restructuring process, saying it will cause job losses and lead to the private sector that delivers essential services provision.

The anti-debt party will receive R69bn of the bankruptcy for the next three years, subject to strict conditions issued by the Minister of Finance, Tito Mboweni on Wednesday.

Eskom's generation side, according to Abedian, has 65% of parts that are out of their economic life.

Irrelevant debate

"Union leaders, where have you been? What cave have you been hiding in? Awake … The argument is false [and] which is not relevant to national interest, "said Abedian, who is also the CEO of Pan-African Investments and Research Services.

Minister for Public Enterprises, Pravin Gordhan, pointed out design deficits in the construction program for Medupi and Kusile power plants, which have caused overlap and delayed costs.

Plant analysis and low fuel and diesel reserves led to consignments in November, December and last week.

Abedian said that Eskom had three elements, and the national grid or transmission is a national monopoly and it should not be privatized.

He added that Eskom's production and distribution units are businesses and can become profitable for the private sector to compete in.

Creating jobs will come & # 39;

"Creating jobs will come if we bring other technology, not to continue to pollute [with coal], "Said Abedian.

He said that unions were "part and paper" of bringing together former president of James Zuma and they can not be trusted to act in the public interest for Eskom.

Abedian said he was disappointed that Mboweni was not going to address the "R400bn" he said he had stolen with the help of law firms, consulting companies and investigating giants during "Capture & # 39 ; r State "and plans to recover the money should be announced.

Unions, government, business and civil society will discuss Eskom restructuring and potential job losses in the next few weeks in the Economic Development and National Labor Council.

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