A judgement made on Friday, 09 October 2020 by the Free State Division of the High Court ruled in favour of the Maluti A Phofung Local Municipality and ordered that the attachment of the bank account of the Municipality be immediately uplifted.
Eskom has however served and filed an application for leave to appeal the judgement.
Eskom attached the bank account of the Municipality on 21 July 2020 to help recover a portion of the R5.4 billion owed by the Maluti A Phofung Local Municipality for the
bulk supply of electricity. These steps were taken in execution of a court order granted in 2018 and in implementation of Eskom’s revenue recovery strategy.
The Municipality’s continuous non-payment of their current account is resulting in further escalation of their overdue debt and poses a serious threat to Eskom’s financial viability and the survival of the utility. The increasing debt owed by Maluti A Phofung forces Eskom to take drastic steps to address this undeniable risk.
