ELM Executive Mayor Sipho Radebe is today expected to announce a breakthrough in relations with Eskom – with which it has been in a severe R5,3 billion debt conflict – after a crucial meeting with CEO Andre de Ruyter.

Radebe is expected to announce the process flow regarding the nw ELM/Eskom deal at a Council meeting on Thursday.

Gauteng Premier Panyaza Lesufi attended the landmark de Ruyter meeting on Wednesday  along with Mayor Radebe and ELM MMC for Finance Hassan Mako, who brokered the meeting with de Ruyter.

It is understood that the parties identified a way forward on debt and the return of ELM’s vehicle fleet, seized by Eskom recently in court attachments which brought service delivery to a halt in Emfuleni.

A firm proposal on the way forward is expected within days, it is understood.

De Ruyter personally intervened in the growing confrontation between Eskom and the Emfuleni Local Municipality (ELM) over debt recovery measures which abruptly cut much service delivery to paying residents and business.

The meeting between de Ruyter and a heavyweight contingent of municipal and Provincial politicians and Premier Lesufi took place after an earlier meeting between Premier Lesufi and all Gauteng Mayors and Municipal Managers and many MMC’s.

The game-changing move by the Eskom CEO follows the seizure of almost the entire vehicle fleet of ELM in a dramatic surprise blitzkrieg operation recently which  effectively paralysed service delivery by the municipality.

The debt recovery operation – based on a R1,3 billion judgment and attachment order obtained by Eskom months ago but long-since challenged in ongoing court action by ELM – has sparked conflict between the two State entities.

“What is especially important to us as a new coalition Government at ELM is that our service delivery capacity – exactly the same capacity which generates revenue to pay Eskom – is restored as soon as possible.

Mako emphasised that it was vitally important that harmonious relationships be restored between ELM and other State entities such as Eskom and Rand Water to bring service delivery and revenue generation security.

Paying residents and businesses in Emfuleni have long been the victim of the debt wars with bulk utility providers such as Eskom and Rand Water, whose legal steps to gouge payment has claimed billions intended for service delivery.

Now Eskom’s seizure of ELM’s vehicle fleet has created yet another vicious-cycle crisis for the embattled municipality.

ELM says it fully accepts its historical debt burden but is placed in an unacceptable dilemma between service delivery obligations to customers or being bled dry by huge payments to other State entities.