South Africa's Gordhan Optimistic on Eskom Solution With Unions
- Minister has met labor unions about situation at power utility
- Risk of cut to junk by Moody’s is ‘hopefully minimal,’ he says
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South African Public Enterprises Minister Pravin Gordhan is optimistic that the nation’s cash-strapped power utility and labor unions can find a “constructive solution” to cutting costs at Eskom Holdings SOC Ltd., which will receive a 69 billion-rand ($4.9 billion) cash injection from the state.
The National Treasury, which considers Eskom the biggest threat to the country’s finances, announced the bailout in the budget on Wednesday. Finance Minister Tito Mboweni said that pouring money into the utility that struggles to keep the lights on is “like pouring water into a sieve.”