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ELM bank account not seized by Eskom yet!

VANDERBIJLPARK. - Full-scale lawfare broke out between state entities Eskom and the Emfuleni Local Municipality (ELM) this week after the power utility said it was seizing municipal bank accounts and assets for debt worth R1,3 billion.

Signalling the opening of lawfare open season against an embattled ELM, Eskom also indicated in a media statement it would also take steps to recover a further R3,4 billion in outstanding debt from the local authority.

This despite the entire debt issue still residing before the Courts and with Eskom allegedly also violating inter – Governmental guidelines set up to resolve financial disputes between feuding state entities without expensive proceedings, said ELM.

But no ELM bank account or assets have yet been attached or seized in terms of Eskom’s own court order by close of business on Monday this week, ELM confirmed.

Now the entire matter has been escalated to newly-elected Gauteng Premier Panyaza Lesufi for political resolution after ELM Executive Mayor Sipho Radebe last week wrote him formally to complain of Eskom’s intentions.

Seizures by Eskom or other major debtors would deny and destroy Emfulni service delivery – and ignite a massive community backlash – by ELM, which only emerged from partial Gauteng Provincial Government administration at end-September.

ELM owes Eskom alone more than R5.2 billion for electricity but also owes another State bulk utility, Rand Water, billions in outstanding payments – sparking fears that the water utility might now again target the municipality with its own attachments.

ELM has also conveyed the legal situation to its banker, ABSA, to not allow any unlawful attachment of its bank accounts whilst the entire matter is before the courts, sources said.

A troubled history exists between ELM and Eskom/Rand Water on payments and debts over the years, but for more than two years Eskom issues were managed behind-the-scenes only to ignite again publicly by an Eskom media statement.

In 2016 then Mayor Jacob Khawe personally led a huge cohort of municipal employees in private vehicles to blockade Rand Water Head Office in Johannesburg following threats to cut Emfuleni’s water supply.

This week Eskom made no threat to cut off power supply to long-suffering Emfuleni residents and business, who have always borne the brunt of feuding between the three State entities.

ELM is also notoriously vulnerable to community backlash with disgruntled interest groups regularly occupying its Head Office, Council Chambers and Mayoral Parlour to the extent of Council meetings being moved to Vereeniging to prevent disruption.

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Elsje Vermeulen

Elsje Vermeulen is the senior editor of MooiVaal Media and editor of the Vaalweekblad. Well-known for her award-winning photography and heartwarming stories, she always has the readers’ best interests at heart. Email: elsje@mooivaal.co.za
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