ESKOM DEBT RELIEF BILL AND POSTBANK AMENDMENT BILL READY TO LEAVE PARLIAMENT

ESKOM DEBT RELIEF BILL AND POSTBANK AMENDMENT BILL READY TO LEAVE PARLIAMENT

• 08 June 2023
• State Owned Enterprises
• SA Legal Academy

Two NCOP committees have completed their work on legislation with significant implications for two state-owned enterprises: Eskom and the South African Postbank.

According to committee reports tabled in the House on 7 June 2023 in anticipation of a second reading on each Bill, no further changes have been proposed. As a result, the Bills could leave Parliament soon and be sent to President Cyril Ramaphosa for signature.

Once in force, the Eskom Debt Relief Bill will enable National Treasury, over a three-year period, to advance a specified amount to the troubled entity in the form of a loan – a portion of which may be converted into ordinary shares issued by Eskom to the state. Tabled in February 2023, the Bill has not been amended by either the National Assembly’s Appropriations Committee or its NCOP counterpart.

The South African Postbank Ltd Amendment Bill provides for the creation of a new bank controlling company to facilitate its establishment and registration in terms of the Banks Act, 1990. Tabled in May 2022, the Bill was processed jointly by the National Assembly’s Standing Committee on Finance and its Committee on Communications & Digital Technologies.

Substantive changes to clauses 3 (incorporation) and 5 (determining the extent of business to be transferred) are reflected in the Bill’s ‘B’ version, which was passed by the National Assembly in February 2023 and is now ready to be endorsed by the NCOP.

• Eskom Debt Relief Bill
• South African Postbank Ltd Amendment Bill ‘B’ version
• committee reports (pages 128 and 145 of the papers)

Published by SA Legal Academy Policy Watch

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