MTHATHA-based King Sabata Dalindyebo (KSD) Local Municipality has revealed it has successfully settled a R165 million historical debt owed to power utility Eskom which had been outstanding for several years.
This comes after the local municipality entered into a settlement agreement with the entity, through payment of instalments while ensuring that the current debt is paid in full, without fail.
The announcement was made by KSD mayoral spokesperson, Olwethu Mabovula, who described the move as a significant milestone in the municipality’s turnaround strategy.
“This [debt settlement] is a significant milestone for the municipality, as stated in our turnaround strategy which was formulated in 2019, and prioritises financial recovery, among other key interventions. The municipal turnaround strategy is currently under review, with more focus on other financial recovery aspects and service delivery targets.
“Over the past few years, the municipality has worked tirelessly to improve financial management practices and eventually reduce the debt burden broadly. This was through careful budgeting, cost-containment measures, and increased revenue collection. The municipality has seen steady progress towards the set goals,” said Mabovula.
She added that the municipality remained committed to building a resilient municipality, based on good financial management practices, hence the successive unqualified audit outcomes for two consecutive financial years, 2021/22 and 2022/23.
“Paying off this historic debt has freed up much-needed finances that will be redirected towards essential services for the benefit of the KSD community. It also puts the municipality in a stronger position to attract investment, and secure additional funding for future initiatives,” she added.
Mabovula said that the municipality was grateful to ratepayers who continue to pay their municipal rates on time, and urged those who still owe the municipality to use the debt discount window currently offered by the municipality.
“KSD municipality would like to express gratitude to all customers and ratepayers for continuing to pay rates on time.
“We wish to further encourage ratepayers to take the opportunity of our rate concession windows that offer a break for our customers to clear their historical debts quicker. The unrelenting efforts of the political and administrative leadership of the municipality are a telling statement, that indeed KSD is a municipality at work to bring about a better life for all,” she concluded.
