North West municipalities owe Eskom more than R7 billion

Power utility Eskom says 11 municipalities in the North West owe it over R7.5 billion. The Klersdorp-based City of Matlosana is the biggest culprit with an unpaid debt of R2.3 billion.

A number of municipalities have made good strides in paying off their debt and Eskom says it will continue to engage with other municipalities to start paying their accounts.

The Ramotshere Moiloa, Maquassie Hills, Lekwa-Teemane, Kgetlengrivier, Madibeng and Naledi local municipalities have all defaulted on their Eskom payments.

The Ditsobotla Local Municipality owes Eskom 1.2 billion Rand and is struggling to fulfill any of their financial obligations. Although a number of these municipalities are participating in a debt relief programme,  their debt keeps increasing.

Eskom spokesperson in North West Ezekiel Baruti says, “At least 11 municipalities in the North West are owing Eskom in access of R7,5 billion. Now Eskom has managed to arrange with only one municipality while the other 10 top municipalities are participating in the municipal debt relief programme to support them in dealing with historical debt while focusing on the current account. If the municipality fails to pay, Eskom will embark on a mediation process and if everything fails in mediation, we will consider the legal route.”

The South African Local Government Association (SALGA) in the province says many municipalities struggle because consumers do not pay for services.

SALGA’s provincial chairperson, Khumalo Molefe says, “We are owed millions by government across the boards provincially and nationally and not only provincial and national governments but government entities as well as the private sector. We are all owed millions. So we are saying let’s balance let us be paid, let the government pay us. So that we are able to service our creditors amongst them, Eskom.”

The HOD for Cooperative Governance and Traditional Affairs in the North West, Ben Bole has encouraged municipalities to develop strategies to collect revenue in order to service their debt to Eskom.

Head of the Department of CoGHSTA in North West, Ben Bole says, “Municipalities to begin to implement the revenue enhancement strategy because there are also businesses, which owe our municipalities including the households, and therefore the MEC has encouraged our municipalities to begin to develop some strategies to collect their monies. By the way including some provincial departments, which actually owe the municipalities. Therefore the MEC has engaged his colleagues in the executive that departments must pay our municipalities so that our municipalities must then be in a position to can service Eskom debts.”

According to a spokesperson for the Treasury in the North West, Lesedi Makhubela, there’s a significant improvement in municipalities participating in the recovery plan.

Department of Treasury. North West spokesperson, Lesedi Makhubela “We have since seen improvement in terms of management of Eskom debts and furthermore municipalities receive support from the provincial treasury to participate in incentive programme of Eskom debts relief. So far we have two municipalities that have made sure that they have paid their current account in about twelve consecutive payments made which is Makwassie Hills and Ramotshere Moilwa municipalities and we are hoping that the third municipality will be in very soon and we will be assisting and comply with all the conditions said and we are hoping that the two municipalities at least two-third of its debts will be written off.”

The provincial Cooperative Governance Department says it has instructed all municipalities to submit monthly reports on how they service their debt to Eskom.