Finweek English Edition - - FEEDBACK - Wim

I’m writ­ing in re­sponse to the ar­ti­cle on Eskom’s tar­iff hikes in Fin­week, 1 Novem­ber. While I don’t want to dis­cuss the tar­iff hike, the dis­cus­sion sur­round­ing the tar­iff hikes and the rea­sons given is in­dica­tive of a disease within all paras­tatals.

With­out a doubt, it comes down to dou­ble tax­a­tion. When you think about it, is­su­ing shares is the most bril­liant way to fi­nance a cor­po­ra­tion. As long as Eskom re­mains a Government cor­po­ra­tion, this mode of fi­nanc­ing isn’t an op­tion. Eskom is ef­fec­tively try­ing to bal­ance its books through tar­iff hikes. It’s like try­ing to pull your­self up by your own shoelaces. It’s ab­so­lute non­sense to claim that tar­iff hikes will stim­u­late eco­nomic growth. Lower tar­iffs en­cour­age cor­po­ra­tions to set up shop in a par­tic­u­lar re­gion or coun­try.

It’s ob­vi­ous that the only so­lu­tion is pri­vati­sa­tion. Proper in­fra­struc­ture, of which elec­tric­ity sup­ply is one of the most im­por­tant el­e­ments, is a trail­blazer for eco­nomic growth. Pri­va­tise Eskom. I’ll be one of the first share­hold­ers.

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