No, the GEPF has not been consulted on Cosatu's plan to raid pensions for Eskom

The Government Employees Pension Fund says it has not been consulted by the Congress of South African Trade Unions or government to help reduce Eskom debt.

Bruce Whitfield asked Abel Sithole of the GEPF if he has been asked at all whether he's willing to release seven per cent of government employees' pension fund monies to plug the big black hole that is Eskom.

The good news is, no we have not. There was no need to consult because this to me is a proposal. Last time I checked a proposal is not an instruction. So I think it is important to not take it as a fait accompli. My understanding is that Cosatu seems to be having second thoughts. There needs to be a reconsideration.

Abel Sithole, Principal Executive Officer - GEPF

I doubt that the president would do so without speaking to the GEPF. Categorically there's been no attempt to try to tell the GEPF to consider any participation.

Abel Sithole, Principal Executive Officer - GEPF

We do invest in Eskom currently, all of our investments depend on energy and Eskom is the biggest supplier of energy.

But if you would say to the GEPF liquidate some of your portfolios to come up with 200 billion, that would be devastating to the markets. A significant issue; that would have a devastating impact on the markets.

Then of course we need to say what are the terms and conditions under which the GEPF would be required to participate. The proposal does not really give details about how this will be done.

Abel Sithole, Principal Executive Officer - GEPF

For Eskom to pay any debt it actually has to operate, generate electricity, be able to sell that electricity. If Eskom can be fixed to generate surplus, of course in theory that is possible. So I do not think we should in a sense assume that Eskom cannot be fixed.

Abel Sithole, Principal Executive Officer - GEPF

Listen to the sound clip below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
 Wealth strategies for small businesses - income or equity?

Wealth strategies for small businesses - income or equity?

Income or equity – what is the difference?

Is the US stock market heading for a crash like the DotCom bubble in 2000?

Is the US stock market heading for a crash like the DotCom bubble in 2000?

The US market has a big impact on all markets and when they get flu, South Africa sneezes.

Anglo American delivers 3.5-billion USD profit, declares final dividend

Anglo American delivers 3.5-billion USD profit, declares final dividend

Anglo American delivered a 2019 profit attributable to equity shareholders of 3.5-billion USD

Jacob Zuma unlikey to attend Sona - Carl Niehaus

Jacob Zuma unlikey to attend Sona - Carl Niehaus

Carl Niehaus and political analyst Levy Ndou weigh in on Zuma attending the state of the nation address.

'I am not shocked, I am happy that Ramaphosa is revealing his true colours'

'I am not shocked, I am happy that Ramaphosa is revealing his true colours'

Callers debate Ramaphosa's statement that FW de Klerk did not act out of kindness when he released Nelson Mandela from prison.

[WATCH] 80-year-old Gogo's first hilarious driving experience goes viral

[WATCH] 80-year-old Gogo's first hilarious driving experience goes viral

Khabazela shares some of the videos that went viral on Twitter and Facebook.

Popular articles
Open day season: How to choose the best school for your child

Open day season: How to choose the best school for your child

Parenting expert Nikki Bush has valuable pointers on what to keep in mind when matching your child to a school.

Zuma returns from Cuba, addresses 'hundreds' of supporters

Zuma returns from Cuba, addresses 'hundreds' of supporters

Former president Jacob Zuma arrived at OR Tambo International where supporters waited to give him a hero's welcome.

[WATCH LIVE] Joseph Shabalala's funeral service underway in Ladysmith

[WATCH LIVE] Joseph Shabalala's funeral service underway in Ladysmith

The music icon and Ladysmith Black Mambazo founder is being laid to rest in his home town in KwaZulu-Natal.

Load shedding to be suspended at 5pm, resumes on Sunday

Load shedding to be suspended at 5pm, resumes on Sunday

Eskom says 'improved generation system performance' will allow it to suspend load shedding at 5pm on Saturday.

[WATCH] Ndlovu Youth Choir's moving 'Homeless' tribute to Joseph Shabalala

[WATCH] Ndlovu Youth Choir's moving 'Homeless' tribute to Joseph Shabalala

The Ladysmith Black Mambazo founder will be laid to rest in Ladysmith on Saturday.

'High possibility' of load shedding continuing throughout Sunday

'High possibility' of load shedding continuing throughout Sunday

Stage 2 power cuts are scheduled until 6 am on Sunday, but Eskom says this could be extended.

 'When languages are being let go of in favour of English, we lose identity'

'When languages are being let go of in favour of English, we lose identity'

Joanne Joseph spoke to Play Africa founder and CEO Gretchen Wilson-Prangley on International Language Day.

'There is a stated commitment to deal with TRC cases but it's taking too long'

'There is a stated commitment to deal with TRC cases but it's taking too long'

Former commissioner Yasmin Sooka says it has been a 16-year battle trying to get the NPA to prosecute TRC-related cases.

We have invested heavily in driver and passenger safety - Uber

We have invested heavily in driver and passenger safety - Uber

Uber Sub-Saharan Africa general manager Alon Lit says their prices have not changed drastically since 2013.

 Tegeta's R3.7-billion coal supply contract with Eskom set aside

Tegeta's R3.7-billion coal supply contract with Eskom set aside

SIU spokesperson Kaizer Kganyago says the court has given the unit the green light to institute legal action against the company.