City accuses Eskom of bad faith

MBOMBELA – Residents of Mbombela, Barberton and White River can rest assured that Eskom will not be cutting their bulk power supply in December.

Eskom published a notice in Mpumalanga News, Lowvelder’s sister publication yesterday, informing the public of its intention to cut power from December 19, as the City of Mbombela Local Municipality (CMLM) owed the power utility R152,4 million. It noted that some of it “has been outstanding and in escalation since September 2016”.

Also read: Eskom announces plans to cut power to Mbombela

Acting municipal manager, Neil Diamond said in a press statement yesterday morning that the notice was circulated in bad faith as representatives of CMLM met with Eskom to discuss the current debt, and they were under the impression that a payment agreement had been reached.

“The City of Mbombela is shocked at the double standards used by Eskom in their dealings with municipalities in Mpumalanga,” he said.

Also read: Residents up in arms over Eskom power cut notice

Diamond claimed that the municipality had an arrears account of R240 million in June, when he and a new acting CFO, Wiseman Khumalo, were appointed. “The Eskom account was prioritised and all accounts were cleared by August.”

“The City has maintained payments on their monthly electricity bill of R90 million since then. Eskom now incorrectly claim that an amount of R152 million has been outstanding since September 2016,” he said.

The R152 million represents the municipality’s current account and a portion of the previous month’s account. “Eskom is misrepresenting the facts,” said Diamond.

He added that the Khumalo has been in discussion with Eskom since October 18 and that they were led to believe that an agreement had been reached.

Also read: Eskom to start with Mbombela power cuts

“CMLM was taken by surprise by the notice from Eskom, and disappointment at the bad faith displayed. Eskom only informed the City on Wednesday afternoon that the payment arrangements were not accepted and published the notice on Thursday.”

Diamond gave residents and ratepayers the assurance that the matter was enjoying attention at the highest level and will be resolved before any power interruption.

“We value our residents, ratepayers and business community and will ensure that this matter is resolved timeously to avoid any interruption of electricity to Mbombela.”

Also read: DA explains Eskom crisis

“The City is undergoing a financial turnaround and recovery process that will provide financial stability to Mbombela. We are well on track, but it is going to take time and Eskom is not helping us in the process,” Diamond concluded.

• The business chambers of Sabie, Graskop and Lydenburg/Mashishing have joined forces to try and force Thaba Chweu Local Municipality (TCLM) to pay its Eskom debt. The municipality’s power has been cut for hours each day since October 9. The chambers intend to approach the High Court on Tuesday to force TCLM to pay R79,5 million.