Response to media reports on Eskom request for funding to purchase diesel
The National Treasury notes the recent public interest and media queries requesting clarity about any discussions to assist Eskom with the purchase of diesel.
The staggered nature of the budget process, which allows for the necessary legislative and executive oversight as well as for well-informed planning about how to allocate the country’s scarce financial resources, makes it difficult to consider and accommodate any ad hoc funding requests outside of this process, especially large requests that are made at short notice.
The budget process allows for government departments and state-owned entities to follow a set process to submit their funding requests to be considered for inclusion in the Budget, which is then approved by Parliament. Eskom did not apply for funding through the budget process and Eskom management should therefore take all necessary steps to ensure they secure the diesel needed to avert severe loadshedding.
That said, the National Treasury and the Minister of Finance are acutely aware of the impact that Eskom’s diesel shortages may have on already severe levels of loadshedding. For that reason, the National Treasury will continue with the engagements with the Department of Public Enterprises and Eskom aimed at identifying solutions to this matter.
