PRETORIA – The Public Servants Association (PSA) says it is shocked at the decision by the Government Employee Pension Fund (GEPF) and Public Investment Corporations (PIC) decision to bail out Eskom.
It has labelled the transaction as unlawful and warned that it will approach the courts.
The PIC announced on Monday that it had agreed, on behalf of the pension fund to advance a R5 billion bridging facility to the power utility to cover its February operating costs.
The state-owned company has been experiencing severe liquidity challenges and has been trying to raise about R20 billion.
The PSA says it feels betrayed because it had agreed, together with the PIC and the GEPF that they would not bail out state-owned companies until governance has improved.
The PIC said on Monday it had conducted its own due diligence and was encouraged by recent governance changes at Eskom.
But the PSA says it opposes the bail-out, irrespective of the terms, adding that it is clear that it cannot trust these two boards.
The association says that its attempts to reason with Finance Minister Malusi Gigaba and the two boards came to nothing, which is why they are consulting with lawyers to address what it has termed, an unconsulted, illegal transaction.