Free State and Mpumalanga municipalities are Eskom’s top debtors
The top 20 list of the power utility's biggest debtors is topped by the Emalahleni and Maluti-a-Phofung municipalities.
The Qwaqwa-based Maluti-a-Phofung Municipality in the Free State happens to be power utility Eskom’s top debtor in South Africa.
According to data sourced from the utility, Maluti-a-Phofung owes approximately R7b to Eskom, followed by the Emalahleni municipality in Mpumalanga, also with R7b.
In the Free State, the Matjhabeng Local Municipality, which renders services to Welkom and other towns, is the second worst municipality when it comes to power supply debt in the province – indebted to Eskom with R5b. The Ngwathe Local Municipality, based in Parys, follows with R2b’s debt.
The top 20 municipalities that owe Eskom the most, also include the Moqhaka Local Municipality in Kroonstad, which owes R808m, alongside the Dihlabeng Local Municipality in Bethlehem, with the same amount. The last municipality in the province that is included in the top 20 is the Nala Local Municipality in Bothaville, with debt of R636m.
North West municipalities are also included in the top 20 list. The municipality that owes Eskom the most is the City of Matlosana, based in Klerksdorp, with R1b. The Ditsobotla Local Municipality, headquartered in Lichtenburg, follows with R980m. The last one in the province is the Naledi Local Municipality, based in Vryburg, with R672m worth of debt. All the amounts mentioned are from December 31, 2022.
During October 2022, the Free State provincial spokesperson to Eskom, Titi Makhetha, said that 16 Free State municipalities collectively owe Eskom over R17b for services rendered.
Makhetha added that the top three owing municipalities are the Maluti-A-Phofung, Matjhabeng and Ngwathe Local Municipalities. “To date, these municipalities have brazenly increased their debt to Eskom to R13.3b.” The municipalities in question are:
- Mangaung
- Nketoana
- Mantsopa
- Tokologo
- Phumelela
- Mafube
- Letsemeng
- Masilonyana
- Tswelopele
In the City of Matlosana Local Municipality, it was explained that the municipality is struggling to keep up with arranged payments with its service providers.
The North West High Court has granted Eskom the right to attach the bank account of the municipality. The court order comes after the municipality failed to settle its monthly debt repayment to Eskom, which is R1.5b in the red now. Over the years, the municipality has failed to keep up with payment arrangements with Eskom plunging the city into a debt crisis.
The mayor to the municipality, James Tsolela, told OFM News that the municipality owes a combined R2.6b to at least two service providers and they are still failing to keep up with the monthly instalments. Tsolela said the municipality owes Eskom R1.5b and the Midvaal Water Board R1.1b. He, however, said the municipality has further entered into more revised payment arrangements with these two entities.
Read the original story on OFM News.
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