The Municipal Public Accounts Committee (MAPC) applauded the Tshwane metro’s administration on settling over R2-billion of historic debt to Eskom.

Chairperson of the Section 79 committee Godwin Ratikwane said the current administration found the city in deep debt to Eskom.

“When the current administration took over the reins of government from the previous administration, the financial state of the city was in a bad situation, so much so that the city owed R6.6-billion to Eskom and was incurring over R200-million in interest on debt.”

Ratikwane said the current administration initiated a commitment with Eskom to ensure that they pay off the debt owed by the municipality.

“In just over 12 months, the administration has successfully managed to pay off R2-billion to the state entity.”

Ratikwane said through its rigorous programme for revenue collection, the city has been collecting outstanding electricity debts owed by residents, local business and government departments to ensure municipal capacity for service delivery and good governance.

“The payment of these debts will relieve the city’s burden of high interest rates, while allowing the administration to redirect the millions previously wasted on interests for service delivery and improve the lives of the residents of Tshwane.”

He added that the liquidity of the metro directly impacts the city’s ability to provide services, and debts of this nature have often contributed negatively to the city’s finances, “to the disadvantage of people whose service delivery needs are compromised”.

“The MPAC Committee would like to encourage the administration to continue adhering to both short- and long-term debt obligations as required by… the Municipal Finance Management Act.”

He further encouraged all residents to continue paying municipal rates and say no to illegal connections by making use of the city’s electrification programme.

Also read: Metro needs to implement tighter controls – Auditor-General

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