Dondo Mogajane | Radio 94.7 FM

National Treasury director-general Dondo Mogajane has said that the best way to fund the bailout of failing state-owned enterprises could be to cut the salaries of all government employees by 10%, according to a report in the City Press.

The government has to find a way to close a R120-billion hole in its budget, which is the result of acceding to a R59-billion bailout for Eskom as well as a shortfall in tax revenue for the fiscal year ended March 2020.

“National Treasury’s box is empty,” Mogajane said to the City Press.

“Growth is not coming through and tax revenues are not there. We are in trouble. The government needs to reduce spending.”

“If we are going to be serious – without people losing their jobs – let us reduce the salaries and stop the bonuses,” Mogajane said.

In response to this plan, unions said that they would not accept the revocation of bonuses and salary cuts for their workers.

“Any talk
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Dig deep, Mzansi. Eskom wants your tax money again. Rumors of a fresh bailout have been sparked after a Treasury official said it’s a case of “when, not if”.

Power giants Eskom have suffered a double-blow this weekend after it emerged that they would need bailouts on top of bailouts to really get itself up and running again. However, their woes have intensified even further, after a local environmental group sued the government over their levels of pollution.

Let’s unpack this one bit at a time. As Bloomberg report, National Treasury Director General Dondo Mogajane said that the government is likely to commit billions more to the flailing utility, stating that they “don’t have a choice” in the matter.

Another bailout imminent for Eskom
Mogajane’s admission comes just months after Eskom secured R69 million from the government for the next three years. However, this came with a caveat – Presiden
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