ELM used legal firm to pay Eskom R30 million

A Johannesburg legal firm paid Eskom R30 million on behalf of the Emfuleni Local Municipality (ELM), but denied reported allegations it received a whopping R37 million for a labour relations case involving a single employee at the local authority.
Legal firm Madhlopa and Thenga Inc (MTI) also confirmed to Vaalweekblad that they received R37 million from ELM, but only R4 million was for legal matters.
The R30 million was paid to Eskom to enable it to uplift a court-ordered attachment of ELM’s bank account for non-payment of its massive R7 billion electricity debt to the bulk utility provider – presumably before ELM was admitted to a Treasury debt relief programme in June 2023.
All legal proceedings and interest payments on ELM regarding its Eskom debt are now frozen due to the debt relief programme.
MTI said it paid a further R3 million out of the R37 million received to the SA Local Government Association (SALGA) on behalf of ELM. This was also due to the attachment on ELM bank accounts.
According to MTI data provided, only R4 million of the R37 million received from ELM was for legal issues, including R180 300.50 for the labour relations case involving Edward Radebe.
The multi-million Rand payments by MTI on behalf of ELM emerged after Vaalweekblad approached MTI last week following allegations of alleged exorbitant legal spending by the municipality, including a massive R37 million amount for the Radebe case.
Neither MTI or ELM have explained the actual mechanics of the R30 million Eskom and the R3 million SALGA amounts received by the legal firm and paid over on ELM’s behalf.
ELM earlier denied a R55 million legal bill including R37 million reportedly spent on the Radebe case. In admitting it received R37 million by ELM, MTI said the amount was not for legal fees as reported.
“A substantial portion of this amount does not constitute legal fees,” said the MTI statement. MTI provided a breakdown of the R37 million payments, which it said included Eskom, (SALGA) and legal matters handled by MTI on behalf of ELM.
The firm stressed it was on ELM’s panel of attorneys.
“By virtue of being on the panel, MTI receives various instructions on an ad hoc basis ranging from conveyancing, litigation, labour, to name but a few,” said the MTI statement.
Asked to confirm the Eskom and SALGA payments through MTI, ELM spokesperson Makhosonke Sangweni said: “It was the only way to break the impasse,” he said.