Mboweni’s first budget will shed light on Eskom
When finance minister Tito Mboweni takes the podium on Wednesday South Africans will wait with bated breath to hear about the state of the country’s finances, paying close attention to Eskom. Novare economic strategist Tumisho Grater says the electricity crisis, added to the mix of high unemployment and a global backdrop that is less supportive of growth, is likely to see the Treasury revise downward the country’s growth forecasts, which will have an effect on the amount of revenue the government is able to collect.
All eyes will be on finance minister Tito Mboweni this week when he delivers his budget speech in the National Assembly on Wednesday.
The state capture commission of inquiry will also be key as it begins hearing evidence on looting at power utility Eskom, amid a financial and capacity crisis at the power utility that culminated in stage four load-shedding last week.
The budget will be closely watched for details on a government bailout for Eskom and SAA. The SA Federation of Trade Unions is expected to protest outside parliament in demand of a budget that deals with unemployment, inequality and poverty.
Two important debates are due in parliament. On Tuesday the National Assembly will discuss ways to transform the economy to “serve the people”. On Thursday MPs will discuss Eskom and the energy crisis.
According to parliament, 39 committees are scheduled to meet this week, with the 2019 budget, 16 bills and other reports from various government departments to be discussed. The portfolio committee on police will discuss the employment contract of Robert McBride, the executive director of the Independent Police Investigative Directorate, on Friday.
Police minister Bheki Cele had written to McBride that his contract will not be extended. McBride challenged this in court, arguing that only parliament has the power to terminate or renew his contract.
The Treasury’s former director-general, Lungisa Fuzile, returns to give evidence at the state capture commission chaired by deputy chief justice Raymond Zondo on Monday.
The commission will turn its attention to allegations of state capture at Eskom on Wednesday. The timing is crucial given the crisis at the power utility, which is partly attributable to the looting and corruption that allegedly took place under former CEO Brian Molefe. Parliament’s inquiry into governance, procurement and financial sustainability at Eskom has shed light on how it became a vehicle for state capture and corruption. The National Assembly adopted the Eskom inquiry final report in November 2018. At the time MPs welcomed the report, with the EFF calling for lawenforcement agencies to investigate Molefe, Matshela Koko, Anoj Singh, the Gupta family, Duduzane Zuma, Jacob Zuma and Dudu Myeni.
Gauteng ANC chair David Makhura will deliver his state of the province address on Monday. Gauteng is seen as the main electoral battleground in the May 8 general elections.
Johannesburg mayor Herman Mashaba will brief the media on M2 bridge defects on Monday. He has raised concern over the stability of the Karzene and Selby sections.