ELM asks National Treasury to pay ‘insoluble’ R5,2 billion Eskom debt
ELM has written to the National Treasury proposing that it take over the seemingly insoluble challenge of paying its historical R5,3 billion debt to Eskom - whose own debts are in any case being taken over by the national Government.
The crisis highlights the dilemma facing Gauteng’s Emfuleni Local Municipality (ELM) – a choice between halting service delivery or paying off its mounting debt to State bulk supply entities such as Eskom and Rand Water.
Gauteng Premier Panyaza Lesufi has also been asked by ELM Executive Mayor Sipho Radebe to intervene with Eskom and facilitate an inter-Governmental political solution within an existing process dedicated to addresses conflict between Government bodies, ELM has confirmed.
No ELM assets or bank accounts were seized by Eskom by Thursday this week, despite the power utility announcing steps to recover R1,3 billion on Monday and to be followed by measures to recover a further R3,4 billion debt.
ELM insists that Eskom violated internal Government resolution procedures by announcing this week that attachments on its bank accounts and possessions whilst court proceedings and appeals were still under way.
But it also emerged that Emfuleni residents and businesses still owe the embattled municipality at least R2 billion – and counting – without little prospect of recovery due to a deeply-entrenched culture of power non-payment and theft in the Vaal.
ELM’s debt to State bulk utility providers Eskom and Rand Water is seen by the municipality as an insurmountable problem requiring an unacceptable solution – paying all municipal revenue earmarked for service delivery to other State entities.
The debt issue is also seen by ELM as a historical problem which emerged years before the present administration – an ANC-led coalition – was elected in last year’s October municipal elections.
However ELM would continue to pay its debt to Eskom and others on an affordability basis and fully accepted its legal debt burden to them – but could not in the interests of Emfuleni residents leave nothing for service delivery, said the municipality.
Emfuleni – historically the Cradle of both Human Rights and Revolution in South Africa – could erupt into open revolt against Eskom and other State entities always extracting service delivery funding through court orders, political sources have warned.
