Government pension fund won't be used to bail out State firms – Gigaba

26th September 2017 By: Reuters

Government pension fund won't be used to bail out State firms – Gigaba

Finance Minister Malusi Gigaba
Photo by: Duane Daws

South Africa is not planning to raid the government pension fund to bail out struggling State firms, Finance Minister Malusi Gigaba said on Tuesday.

Gigaba also denied reports that he told a Cosatu union meeting that indebted State-owned entities needed R100-billion ($7.50-billion) to survive.

Citing people familiar with the matter, Bloomberg reported on Friday that the National Treasury needed at least R100-billion to rescue power utility Eskom Holdings, oil company PetroSA and aerospace company Denel.