VANDERBIJLPARK – Emfuleni Local Municipality has received a major financial boost after the National Treasury approved the second tranche of the Eskom Municipal Debt Relief Programme.
The decision will see approximately R1.97b of the embattled municipality’s long-standing debt to Eskom written off.
Emfuleni Mayor Hassan Mako has welcomed the decision, calling it a critical step toward rescuing the struggling municipality’s finances.
Speaking through mayoral spokesperson Mphikeleli Msibi, the municipality said that the debt write-off will provide much-needed breathing space.
“This measure will enhance Emfuleni’s financial standing by alleviating the burden of legacy debt, fortifying its balance sheet, and generating increased fiscal capacity to allocate resources towards improving service delivery, maintaining essential infrastructure, and ensuring the long-term viability of municipal finances,” said Msibi.
However, he warned that the municipality still faces strict obligations if it hopes to qualify for the final phase of the debt relief programme.
“While this accomplishment is positive, the municipality recognises that it entails clear obligations, and ongoing adherence to the terms of the debt relief program is crucial for eligibility for the final installment of debt relief,” Msibi said.
The municipality also expressed gratitude to the National Treasury, Gauteng Provincial Treasury, the Department of Cooperative Governance, Eskom and other stakeholders for their continued support in steering Emfuleni’s financial recovery efforts.
Despite the good news, the National Treasury highlighted several areas that need urgent attention.
These include improving revenue collection, tightening credit control measures, enhancing reporting compliance, and ensuring that electricity and water tariffs reflect actual costs.
Msibi confirmed that interventions to address these challenges are already underway.
“We have already initiated interventions to address these concerns and are steadfast in our commitment to achieving full compliance with all outstanding conditions,” he said.
Mako emphasised that the municipality’s financial recovery cannot succeed without the cooperation of residents and businesses.
He urged all customers to pay for their municipal services consistently and on time, explaining that every payment helps the municipality pay bulk service providers, maintain infrastructure, and improve service delivery.
“By collaborating with communities, the municipality anticipates strengthening its financial standing to enhance service delivery and foster an environment conducive to economic growth, investment, and an improved quality of life for all residents,” Mako concluded.
