The DA in Mpumalanga voiced concern about the R2-billion interest on the Eskom’s R11-billion’s debt, saying it could have been sufficient to build 11 844 RDP-houses.
Ms Trudie Grové-Morgan, spokesman on Cooperative Governance and Traditional Affairs (CoGTA), issued a statement in this regards on Monday, August 2.
She said the DA posed questions and learned that as at the end of February, the province owed Eskom an amount of R10.957-billion.
“This exponential increase is concerning given that in April 2016, the province owed R1.7-billion,” the statement read.
According to her, it later increased to R7-billion as of July 31 2019 and this outstanding debt to the entity is currently well over R10-billion.
Lekwa Municipality is one of the biggest contributors, owing R1.1-billion.
Ms Grové-Morgan also said it reiterates the vicious cycle in the province as most municipalities struggle to draw an income from the sale of services, and are in turn unable to pay creditors for services provided.
The amount of interest elicited the comment that the DA finds it shocking that on the R10.9-billion, R2.015-billion is charged.
“How would our province break free from this debt?”
According to the DA, it robs deserving residents of much needed service delivery.
The interest could have been used to build one hospital at an estimation of between R1.05-billion to R1.3-billion; build an estimated 11 844 RDP-houses at R168 852 each and repair an estimated 1 333 333m2 to 2 857 142m2 worth of potholes on roads in the province.
The latter is based on the R700 to R1500/m2 estimation given by Transport Minister, Fikile Mbalula, in April this year.
Ms Grové-Morgan concluded by saying the DA will write to the MEC of CoGTA, Ms Busisiwe Shiba, asking her to devise a plan to ensure that all municipalities in the province are able to draw an income from the sale of services, and in turn, pay creditors such as Eskom timeously.
