The Eskom debt saga is an ongoing soapie.
In the next episode the Democratic Alliance wants to approach the Office of the Public Protector to investigate the failed land sale in eMalahleni to cover its Eskom debt.
The proceeds of the sale were supposed to go towards paying off the municipality’s Eskom debt.
Earlier this year the municipality tried all avenues to settle some of its debt with Eskom. They resolved to sell municipal land estimated to be worth R250-million in order to service its debt to Eskom.
Ranape Consulting was the successful bidder and resolved to pay the R250-million required.
But things went sour.
“During a recent meeting with Ranape Consulting, we were shocked to learn that the matter is now being taken to court because of Emalahleni Municipal Manager, Theo van Vuuren, only gave the company an unreasonable five hours to pay a 10% deposit of R25-million on April 24,” said Cllr Sibusiso Mokoena, DA Councillor in the local municipality.
It is alleged that van Vuuren refused to give the company a reasonable extension so that they could access funds at the bank and instead informed Ranape Consulting that the deal on the sale of the land was cancelled.
Cllr Mokoena said the Executive Mayor, Cllr Lindiwe Ntshalintshali, has failed to inform council that the matter has been taken to court and why.
The municipality has now re-advertised the sale of this land, and it could be a while before another company is able to purchase the land at its estimated value of R250-million.
To date, council has not received any detailed plan or repayments arrangements made by the municipality to settle its Eskom debt.
“The already cash-strapped municipality will also incur legal costs, due to Ranape Consulting approaching the courts for an intervention following the dubious nature in which Theo van Vuuren handled the sale of this land,” Cllr Mokoena said.
ALSO READ:
https://www.citizen.co.za/witbank-news/86407/municipality-has-to-sell-land-to-pay-eskom/
https://www.citizen.co.za/witbank-news/88969/eskom-account-track-says-municipality/
