Don’t panic

“It will require all stakeholders to pull their weight in the sense that business and the community should continue to honour their accounts.”

February 10, 2016

Sifiso Mathebula 2 minutes read

Ms Estelle Mitchell, Ms Barbie Nkosi and Mr PJ Burger (manager) of Bethal Spur.

Retail managers and shop owners said the planned power outages from April are going to negatively affect their businesses.

Eskom announced that discontinuation of the electricity supply in the Govan Mbeki Municipal area will be effective from April following Council’s failure to honour its payment arrangement.

The municipality owes Eskom about R190-m, part of which has been outstanding and escalating since January 2011.

Eskom said it is obligated to supply electricity on a financially sustainable basis.

Locals retailers have voiced their concerns regarding the matter.

Ms Thalita Rakgalakane, manager of Bethal Mr Price, said the upcoming power outrages are going to have a bad affect on the store’s sales.

“With the bad currency, the numbers are already not looking good.”

She said communities must arrange a meeting with the municipality to clarify things.

According to her, not only will the cuts affect sales, but retrenchments might also become a reality.

“Why must we suffer if we are good payers?” asked Mr PJ Burger, manager of Bethal Spur.

He said they are lucky to have a generator, but profits are already going down.

“Though we are open during power outrages, we buy a lot of diesel for the generator and thus do not make much profit,” he said.

Meanwhile, the Mpumalanga Democratic Alliance demands that Ms Refilwe Mtshweni of Cooperative Governance and Traditional Affairs (GoGTA), summons the defaulting municipalities to appear before the Portfolio Committee to present their Credit Control and Debt Collection policies, as well as their plans for paying off their outstanding debt.

At least seven municipalities in the province have been served with notices that Eskom will cut off their electricity supply on 11 April if they do not pay the reported money they owe the utility company.

Mr James Masango, DA provincial leader, said: “Electricity is an essential service and for that reason, residents should not be made to suffer for the failings of municipal managers who are not maintaining proper financial controls.

“The MEC must impose a recovery plan on the affected municipalities or assume responsibility for the financial administration of these municipalities.”

Mr Bheki Kubheka, head of marketing, said it is crucial that residents remember what Mr Johnny Mokgatsi, CFO, said during an interview with the Ridge Times in June.

He said this matter would not disappear in a day, a week or a month based on the nature, complexity and amount due to Eskom.

He said an agreement was reached with Eskom, but due to the short time frame given and low cash flow, the municipality could not honour the old debt agreement.

“However the current accounts were serviced and are still serviced.

“Of course we cannot ignore the fact that our debt is still enormous, however to date we have not been switched off since June 2015.

“This was mainly because we have been trying our level best to address both the old debt and current account.”

Mr Kubheka said it is a fact that the municipality will not settle the Eskom debt on its own, considering that it is a non-profit orientated organisation.

He added that it will require all stakeholders to pull their weight in the sense that business and the community should continue to honour their accounts.

“It is in light of the above that Council would like to request its business stakeholders and the community at large not to panic due to the notice issued by Eskom.