In execution of a court order granted in 2018 and in
implementation of its revenue recovery strategy, Eskom on 21 July 2020 attached
the bank account of Maluti-a-Phofung Local Municipality in the Free State.

This resulted in the account being frozen. Upon response by the bank, funds in the
account will be transferred to Eskom, to help recover a portion of the R5.3 billion
owed by the Maluti-a-Phofung Municipality.

This step on the part of Eskom is a result of the repeated failures by the municipality
to adhere to its payment obligations to Eskom for the bulk supply of electricity, Eskom said in a media statement.

“Eskom will continue to explore all available legal avenues to ensure that outstanding
municipal debt is recovered.””

“The outstanding municipal debt of R30.9 billion as at end June 2020 continues to
threaten Eskom’s sustainability, and municipalities have a responsibility to fulfil their
financial obligations for the bulk supply of electricity,” Eskom said

Ngwathe Local Municipality (Parys, Vredefort, Koppies, Edenville and Heilbron) owes Eskom R1,2 billion.