Premier says TCM is under control
According to Mabuza, an anonymous donor is to rescue Thaba Chweu Municipality from its financial woes.
NELSPRUIT – An anonymous donor is about to rescue Thaba Chweu Municipality (TCM) from its financial woes, according to the premier, Mr David Mabuza. “The situation is well under control and there is no need to worry,” he said.
He was speaking at a ceremony at his office on Thursday at which Eskom and the Mpumalanga Provincial Government signed a Memorandum of Understanding (MoU) to strengthen their relations.
The document, which formalises the existing cooperation between the two, is a formalisation of the parastatal’s investments in the province. The exact terms of the MoU, aimed at developing initiatives geared towards creating decent employment and promoting sustainable development, remained unclear and drew scant attention from the media in attendance.
Instead, the focus was on the imminent shutdown of Eskom’s bulk electricity supply to the municipality, since it owes R146 million. “The situation in TCM is an abnormal one,” Mabuza said. “We stepped in to try to assist, because their billing system is incorrect and they don’t collect revenue.”
He said there was a nine-man team working with the municipality. “I want to assure Eskom that the debt will be paid. Soon, an international funder will give the municipality a grant, part of which will be used to pay the debt.”
The identity of the donor remains unclear, but the premier assured all those present that the situation was under control and there was no reason to worry about the electricity supply. The week before, Mabuza said that government would have to persuade some municipalities not to do revenue collection.
However, he didn’t explain which entity would do so instead. In response to questions from the media, Mr Dan Marokane, acting group executive for group capital, who represented Eskom at the signing, said instead that the signing was to be celebrated. “It is groundbreaking cooperation. It is a mammoth task and we should not underestimate it.
“The agreement intends to align Eskom’s initiatives to the Mpumalanga Government’s strategic priorities with clear outcomes that will be measureable. “These include job creation, the development of small businesses and cooperatives, urban and rural infrastructure development and environmental sustainability,” he said.
Mabuza said his government intended to meet with TCM monthly to monitor the situation and implement corrective measures in time, without waiting for it to collapse before stepping in.
