Labour unions want to raid your mom's pension fund

The Congress of South African Trade Unions has proposed that civil servants’ pensions and a state-run unemployment fund be used to pay Eskom's debt.

Is it a case of robbing Peter to pay Paul?

But if a certain percentage of pension money is not used to pay Eskom debt, the entire power utility will fail, taking the rest of the country with them - in which case there will anyway be no more jobs, investment... or pensions.

The Money Show interviewed three role players and analysts.

Paying pension money into debt is not investing - it's essentially turning debt into equity. Until such time as you get the operational dynamics right and Eskom can live within its means you're paying good money after bad.

We're putting the cart before the horse.

Once the company is running efficiently we can talk about this option.

Promises that 'this time it's different' ring a bit hollow.

George Glynos, economic analyst -ETM Analytics

Eskom is in a serious crisis. The debt levels are unmanageable.

If Eskom goes under we are finished as an economy - it will not only be the workers at Eskom whose jobs will be destroyed, it will be all South Africans and pensioners.

We must save it - otherwise we'll have no economy, no jobs, no pension.

Matthew Parks, Cosatu Parliamentary Coordinator

We are not in support of the proposal. Why must public servants' pensions be included in bailing out Eskom?

Eskom has a debt. Paying debt is not investment - public servants must always pay the bills and debts of those who are running these SOEs.

Reuben Maleka - Public Servants Association of South Africa

Listen to all three views in the sound clip below.

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