Special Appropriation Act signed – Funding Eskom
25 Nov 2019
President Ramaphosa has assented to the Special Appropriation Act.
The presidency published the act in Government Gazette 42852.
Parliament passed the Special Appropriation Bill and sent it for assent at the end of October 2019.
The bill was tabled in parliament on 23 July 2019.
The act is designed to make available additional funding for Eskom.
It aims to:
- appropriate an additional amount of money for the requirements of the Department of Public Enterprises to assist Eskom Holdings SOC Limited with its financial obligations and to provide for matters connected therewith.
R59 billion will be appropriated out of the National Revenue Fund over the next two years, R26 billion in the current financial year and R33 billion for the 2020/21 financial year to “assist Eskom with its financial obligations”.
The act stipulates that the finance minister may impose conditions on Eskom to be met prior to transfer of the funds and must impose conditions to be met by Eskom after the transfer of any part of the amount.
During the legislative process, the standing committee on appropriations was briefed on the proposed conditions to be imposed on Eskom.
Recommendations put forward by the committee included that the “Minister of Finance should brief the committee on the ministerial conditions by the end of November 2019, and that some of the conditions are contained in the 2020 Appropriation Bill. The committee further recommended that the Bill should authorise the Minister to make further regulations pertaining to the appropriations to Eskom, and the committee be briefed on the proposed regulations and further conditions prior to the introduction of the 2020 Appropriation Bill”.
The committee also red flagged the absence of specifications on potential consequences should Eskom fail to comply with the conditions.
The act is now in effect.
See also:(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)