The Enoch Mgijima Local Municipality owes Eskom hundreds of
millions of rands with a monthly interest in the region of R100 million.
This was revealed by embattled Chief Financial Officer
(CFO), Paul Mahlasela, during a council meeting on Thursday, March 31.
He was presenting the municipal R1.062 billion draft budget
on behalf of Executive Mayor Thembeka Bunu.
Mahlasela said of the total amount, R946.6 million would go
to operational budget while R115.7 million will be towards capital budget.
“The budget is not funded and our primary factor creating
the problem not to fund the budget is the Eskom debt of R710 million. Our
monthly interest is between R100 million and R200 million,” he said to gasp
from councillors.
Mahlasela said tariff increase could be at 9.61% next year
but this could be reviewed by Nersa.
Rates and refuse, the CFO said, would be up 5%.
He said it could be unaffordable to pay anything more looking
at how the economy was performing.
The local authority will receive a R250 million equitable
share.
Employee related costs were 37.9% of the total operational
budget with a 4.8% increase in the next three years.
“The municipality could not spend its Inep fund of R17.6 million
and as a result, it was taken back. We did not get money last year, but we
engaged them and for the next financial year we will get R15.7 million,”
Mahlasela said.
UDM’s Mthuthuzeli Hokolo said 9% was too high adding that to
avoid electricity theft, increases must be reasonable.
Council speaker Noluthando Nqabisa said, “CFO we must make a
proposal that when government bails Eskom out, that money must write off a part
of municipal debts. They are double dipping now.”
She said EMLM can’t be a municipality that builds stadiums
but should rather ensure proper roads, electricity infrastructure and master
waste management.
