COMMENT: Eskom is indeed an ‘enormous risk’

While there are very few positives to draw from Finance Minister Malusi Gigaba’s maiden Medium-Term Budget Policy Statement (MTBPS), his acknowledgement that Eskom poses an “enormous risk” to the entire economy is one. “Eskom exposes government to an enormous risk because of the size of its guarantee framework, the size of the loans and the debt it has. Obviously, if anything went bust in that regard it would have an immediate impact on the national balance sheet. I don’t think that we will be able to step in to bail Eskom out if anything went wrong,” Gigaba said.