Row over Ekurhuleni’s R7 billion electricity debt

A dispute has broken out over Ekurhuleni’s electricity debt, with the ANC-led coalition running the metro rejecting claims of a financial crisis.

This, while the DA insisted the situation is far more serious.

The disagreement comes from an Eskom debt figure of about R7 billion quoted by DA member of the provincial legislature, Mike Waters, over the long weekend.

Waters said the ageing debt to the utility indicates a deepening financial problem. The city argued it is being taken out of context.

City says most of the debt is current

Ekurhuleni MMC for finance, Jongizizwe Dlabathi, said the alleged figure was wrong and added that it does not reflect an immediate financial breakdown.

“There is an outstanding balance, but most of it is current,” he said. “It’s not as bleak as it is being made out.”

Dlabathi said the portion that is actually overdue is far lower than the DA’s headline figure, placing it at around R1 billion.

“The rest is part of our normal monthly billing cycle,” he said. “We are not in a position where Eskom is about to switch us off.”

The ANC councillor suggested the narrative around the debt was created without full knowledge of the details.

“If there had been proper engagement, there would have been a clearer understanding of what those numbers represent,” he said.

Dlabathi also dismissed suggestions that the metro is facing an electricity crisis.

DA challenges accuracy

But the DA disputed this version.

Waters said a written reply from the provincial Treasury confirmed Ekurhuleni owes Eskom R6.948 billion and that no action has been taken to address it.

“This is nothing short of an abdication of responsibility,” Waters said. “If a municipality owing Eskom a mountain of money does not warrant intervention, then what does?”

He questioned how the debt accumulated. “The claim that this amount built up within 90 days would mean the city is failing to pay about R2.3 billion per month,” he said.

“That raises concerns about the accuracy of reporting and sustainability of the city’s finances,” Waters warned.

The risk extends beyond balance sheets.

“Residents and businesses remain exposed to possible electricity supply disruptions while the provincial government sits idle,” he said.

Financial management and transparency concerns

Dlabathi noted ongoing efforts to stabilise the city’s finances.

“We are continuing with our campaign to deal with non-paying businesses and residents. That process is ongoing,” he said.

Last year, the municipality cut off non-paying businesses, including Transnet. On the ground, Simon Lapping said the issue stretches beyond a single figure.”It’s getting worse and worse and worse,” he said.

“This comes down to poor financial management; inflated prices paid to cadre-vendors and money being spent on projects that don’t get completed on time.”

He said the city’s financial position cannot be judged purely on official reports.

“On paper, it looks better, but in reality, it’s not,” he said.

“They are delaying payments, which makes the cash flow look good, but the debt is piling up.

“Lapping also questioned whether the figures being presented reflect the true situation.

“If the MMC is saying it’s not as bad as originally thought, then either he is misleading the public, or the figures being presented to the council are incorrect,” he said.