Govan Mbeki Municipality is in a legal challenge with Eskom about the interest that the power utility is charging the municipality.
Mayor Nhlakanipho Zuma said the municipality owes Eskom R2,9billion of which more than R1b in interest.
“We have paid more than R20m on both the Eskom and Rand Water accounts this month, and previously we had paid both entities more than R100m.
“The high interest that is charged by Eskom is concerning and that is why we are legally challenging Eskom,” said Zuma.
He said this during his State of the Municipality Address (SOMA) that was combined with an ordinary council meeting held at Lillian Ngoyi Centre in Secunda on Tuesday, May 31.
Councillors from opposition parties asked the mayor why grants that are received by the municipality are not used to settle the Eskom and Rand Water debt.
The mayor responded that the grants are to be used for specific purposes and cannot be used for other things.
“Grants are only for projects for which they have been allocated. If we pay Eskom and Rand Water with the grant money, we will be breaking the law. Then there will be serious consequences,” said Zuma.
Mayor Zuma said the Integrated Development Plan(IDP) is finalised.
Zuma said they have done well in certain wards in terms of public participation though there were challenges in certain wards. He asked the public participation committee to take that up to make sure that all community members are involved in consultation processes because it is about their needs.
The mayor said some developments took place after the previous SOMA.
Three of the four schools that were announced to be built are in the final stage of design and construction will begin this financial year.
“We appreciate the businesses that are operating within our municipality for their continuous support.”
He mentioned Sasol’s help in upgrading the electrical infrastructure network and the upcoming construction of a waste transfer station by Evander Goldmine and other business interventions.
Zuma called for an urgent economic summit aimed at fighting unemployment and poverty within the community.
“This economic summit must be held jointly with the energy summit as energy has now become a basic need that drives all other basic needs,” said Zuma.
He said the municipality has structured its budget to prioritise sewer and water projects.
About R80m was allocated to fighting sewage spills.
Zuma said it is unfortunate for the municipality that they are unable to spend the entire budget that was allocated in grant form while the municipality is facing infrastructure challenges.
“We have made significant progress in electricity at Bethal, eMzinoni and eMbalenhle since the last SOMA.
He said in eMbalenhle the strain of long hours of load-shedding and load-reduction have been reduced, but there are still areas with limitations.
He believes more interventions to the network will lead to no load reduction.
“The municipality is also busy with interventions in Bethal and eMzinoni in ensuring the maintenance of the network and upgrading of capacity.
“We have started with the designs for the construction of a new substation that will be completed in the next two years.
“This is the long term solution as we are busy with short to medium-term solutions.
“The load-shedding challenges that are engulfing Bethal and eMzinoni are being attended to and over 1300 smart meters are being installed.
“This will not only assist in controlling the load but also will assist the municipality in revenue generation to service its Eskom account and also assist in the maintenance of the network,” said Zuma.
