The almost R3 billion owed to Eskom by two thirds of Northern Cape municipalities has obliged a political party and a union to demand that the debt be paid.
This comes after Eskom froze the Renosterberg Municipality’s bank account, resulting in workers not receiving their salaries for the past two months. Eskom said in a recent statement that 18 municipalities owed some R2,8 billion as on 31 March.
Of these defaulting municipalities the Kai !Garib Municipality (Kakamas, Keimoes and Kenhardt) owes R490 million, Sol Plaatje (Kimberley) R470 million and Gamagara (Kathu, Deben and Olifantshoek) R325 million.
‘Most worrying’
The South African Municipal Workers’ Union (Samwu) said in a statement it was most worrying that only two municipalities were in talks with the utility to make payment arrangements.
“In the Renosterberg Municipality’s case the non-payment resulted in the power utility approaching the courts and successfully attaching bank accounts. As a result the municipality was not able to pay its creditors and employees earlier in the year.
“We call on the affected municipalities to settle their debt with Eskom. They must take proactive measures to engage with Eskom on making payment arrangements so as to avoid bank accounts being attached.
“We are worried that the Renosterberg Municipality has not settled its account. Another worry is the debt of the Sol Plaatjie Municipality, creating an impression that the problem is systematic in the entire province.
“The provincial government should ensure that all government departments settle their debt with the municipalities and must continuously play their oversight role in municipalities. Eskom must improve intergovernmental relations and not rush to the courts to attach municipal bank accounts. Meaningful dialogue with the aim of resolving the situation is in the interest of all.”
Samwu will approach Bentley Vass, MEC for Cooperative Governance and Traditional Affairs (Cogta), to get assurance that the provincial government will play their supervisory role.
‘Stop misuse of charges’
Danie Coetzee, VF Plus MPL, says the Northern Cape has many renewable resources that can make municipalities independent of Eskom and of continuous, unfair power tariff increases.
“We have the necessary expertise and are prepared to share it with the province.
“However, it is important that municipalities pay their debts to Eskom to prevent this burden from increasing annually and Eskom being put under further financial pressure.
“Strong action must be taken against municipalities that misuse their water and electricity service charges for other expenses. Consumers pay for electricity and water, but some municipalities use that money to pay salaries.”
Municipalities failing
Patricia Tsepane, Eskom communication and stakeholder relations practitioner, said in a statement that the financial sustainability of Eskom in the Northern Cape is hampered by soaring municipal debt.
“Payment patterns by the majority of the province’s municipalities have been irregular over the past five years and have contributed negatively to the overdue debt.
“The municipalities receive annual equitable share from government and payment for services from their customers.
“The expectation is they should, in return, pay Eskom for the electricity supplied. Eskom has extensively engaged these municipalities on the irregular payments and highlighted the impact of non-payment. Despite this, the municipalities fail to honour their responsibilities in terms of their electricity licence requirements and continue with non-payment of their current accounts.
“Only two municipalities are in discussion with Eskom to conclude acceptable payment plans. Municipalities have a constitutional duty to pay for bulk supply.”
- Bronwyn Thomas-Abrahams, spokesperson at the office of the premier, and Babalwa Mzambo, Cogta spokesperson, did not comment.
