Eskom threatens to cut Mogale City’s power unless debt is paid
Mogale City is one of 42 municipalities in South Africa that haven't honoured their payment agreements with Eskom
Eskom is allegedly threatening to cut supply to numerous municipalities in South Africa unless their dept – to the tune of billions – gets paid.
Eskom announced that a mere 20 of the 62 municipalities who get their electricity from them have honoured their agreements by the end of May.
In total, municipal debt amounts to more than R11 billion.
Read more: [JUST IN] Strike at Mogale City municipal building
And to make matters worse for Krugersdorpers, Mogale City Local Municipality (MCLM) is also on the power-cutting list.
MCLM has allegedly failed to honour payment agreements with Eskom, thus accumulating millions of rands worth of debt.
The result is that Eskom will cut power to MCLM by 25 October 2017, unless their dept decreases substantially.
A political informant in MCLM said this about the claims: “It is entirely possible that MCLM hasn’t paid its debts to Eskom because of the recent Mayoral change, employment of unnecessary staff, and back-payments to reappointed staff.
“I am of the opinion that at this point in time the municipal management is spending more money on employees than on debt payments.”
This was proven by a confidential document that was leaked to the News, which indicated that employees, who haven’t been in the office for a number of months, still receive more than R1 million a year in salaries.
Also read: ANC reinstates workers costing R20m per year – with back-dated salaries
The question municipalities and community members asked was whether or not Eskom had the right to cut power to a municipality.
This question was answered earlier this year when Eskom won a court case against AfriForum.
On Thursday, 25 May, the Pretoria High Court ruled that it is Eskom’s constitutional right to effect scheduled electricity interruptions, when it dismissed applications by AfriForum and other businesses.
AfriForum, together with other parties, gave declaratory orders to the effect that Eskom is not permitted to interrupt the supply of electricity to any local authority as a means to collect acknowledged debts owed to it. There were other reliefs, however, this seemed to be the most focused on during the case.
Eskom opposed all the relief sought on the other issues raised by the remaining applicants, arguing the mootness of all the cases and the legislative rights of Eskom to interrupt or terminate the electricity in terms of section 21(5) of ERA.
The court agreed with all the arguments presented by Eskom to the effect that section 21(5) is constitutional and Eskom is empowered by statute to disconnect defaulting customers, which includes the municipality.
The News contacted Eskom to verify the power-cutting information and is awaiting feedback. Meanwhile, MCLM has been radio silent about the claims, despite the News asking for comment.
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