TCM refer multi-million-rand debt to Office of the Premier

LYDENBURG – In light of the notice given by Eskom, the acting municipal manager, Mr Lesley Mokwena, called an urgent press meeting with members of various media houses to discuss the possible disconnection of electricity to the Thaba Chweu district.

Mr Lesley Mokwena, known as a man who doesn’t beat around the bush, told the media that he called this meeting because of the notice advertised in the Steelburger/Lydenburg News. He explained that he would like to give background information regarding the current situation. He said the Eskom debt started in 2012 due to the municipality’s difficulty in honouring its financial obligations, among others electricity purchases and employee obligatory payments. “This situation was due to poor financial management of Thaba Chweu Municipality’s (TCM) financial resources. From that time TCM received a mix of assistance packages from the provincial government through various interventions to assist the municipality to deal with its financial obligations, among others the Eskom debt.”

He said although the account was still very high at R282 million, TCM has made strides in ensuring that the Eskom current monthly accounts for bulk purchases are honoured. “On a financial standing basis, the Eskom debt accounts for 42 per cent of the total municipal annual budget of R675 million. The following facts are very important to note as direct attributes of the Eskom debt: Illegal connections by households, interest on the outstanding account, Nersa approved high rates for the winter season and non-payment of municipal rates by customers.”

He said the municipality has, after numerous interactions with Eskom and provincial government to find a workable solution, taken the decision to refer the Eskom debt to the premier’s office for intervention on the following proposed areas: to negotiate on the interest rates, to negotiate to relax the allowed maximum demand to avoid further penalties and the signing of an affordable repayment plan with Eskom.

“The following plans, which require the support of residents and municipal services are in place: Credit-control plans that include service cut-off for arrear accounts, the 70/30 per cent split deduction for accounts in arrear, prepaid electricity purchases, a dedicated collection project for the top-100 owing customers, the conversion of all electricity meters into prepaid meters and the continuous corrective action to deal with ‘rogue’ municipal officials tampering with electricity connections.”

Mokwena said the Eskom notice remains a cautionary step, but severe and punitive planned action will be enfored if the municipality does not correct the situation. “The April date in the Eskom notice is indicative and TCM is engaging all necessary stakeholders within the allowed time frames, including the MEC for Cogta and premier’s office for speedy resolution of the debt situation.

“Lastly the municipality always takes the Eskom debt issue with the seriousness it deserves and all the effort is invested in this issue to find sustainable solutions. This action should once more serve as caution to all stakeholders and consumers to take necessary caution regarding electricity use, including economical use of electricity, payment consumers and to stop illegal electricity connections. There will be continuous communication by the municipality to its stakeholders with regard to resolution on the Eskom debt.”