THE cash-strapped Enoch Mgijima Local Municipality must raise R163 million in 40 working days or face extreme power cuts in Komani and Tarkastad.
With a total debt of R309 million as on October 25, of which R146 million is historical debt, Eskom now demands that the municipality pay the difference of R136 million within 40 working days – starting Monday, November 4.
The threat to cut electricity supply to the two towns, comes after the municipality failed to honour a payment agreement of R30 million a month.
According to a notice published by Eskom last month, electricity supply would originally have been interrupted from November 26. The deadline has now been extended to early January next year. Enoch Mgijima Mayor, Luleka Gubhula, contributes the historical debt to the erstwhile entities that were merged to form the current municipality in 2016.
“However, the debt and our current account have accumulated over the years. Eskom demands that we pay the money to avoid disconnections.”
According to her, although the municipality does not have the money to pay Eskom, they will do everything in their power and utilise every resource at their disposal, to mitigate the scheduled interruption of bulk power supply to the two towns.
She says, “Komani is the economic hub of the district and a gateway to East London – we cannot just be switched off. That will have detrimental effects on everyone.”
According to Gubhula, mitigating measures include letters to all debtors, giving them seven days to pay their outstanding debt – or they will be disconnected.
“The majority of the outstanding debt to the tune of about R800 million, is that owed to us by businesses, government departments and institutions,” she says.
Gubhula says it is also hoped to use part of their equitable share of R180 million to pay Eskom.
“We are in discussion with the national and provincial treasurer to have our grant, which is currently being withheld due to uncertainty at the municipality and the lack of a municipal manager at that time, released,” says Gubhula.
According to her, they are in constant engagements with Eskom to find other possible solutions.
