Municipality keeps lights on
JUST hours after Eskom announced that it had intensified the interruption of bulk electricity supply to Phokwane Local Municipality (affecting residents in Jan Kempdorp and Hartswater), the supply interruption was suspended following a satisfactory payment.
Eskom said in a statement late yesterday afternoon that supply interruptions to Phokwane Municipality had been suspended with immediate effect after a satisfactory payment was made earlier in the day.
Interruptions to Phokwane were implemented on Tuesday last week (September 18) due to the municipality’s failure to honour its debt to Eskom for the bulk supply of electricity.
Yesterday morning the power utility warned that “since the municipality has not made sufficient payments to halt the interruptions, Jan Kempdorp, Hartswater and Ganspan would face daily interruptions with a total duration of six and a half hours per day as opposed to the previous week’s four and a half hours”.
It further warned that if the municipality did not make sufficient payments by next Monday, October 1, interruptions would be intensified to 14 hours per day.
However, the interruptions were staved off after the municipality apparently made the payment yesterday.
The DA has meanwhile written to the MEC for Co-operative Governance, Bentley Vass, to request the urgent implementation of Section 139 of the Constitution in the Phokwane Municipality.
DA provincial leader, Andrew Louw, said yesterday that the section provided for an interventionist measure to be put in place which would allow for a financial recovery plan, failing which the municipality would be placed under administration.
“The municipality has completely failed to honour its debt payments totalling millions of rand.”
According to Louw, Eskom was demanding R10 million from the municipality before power would be restored.
“The municipality could apparently only pay R5 million,” Louw added. “On top of this, it owes Vaalharts Water R15 million, for which a final notice was already served 14 days ago. Monthly salaries to the value of R7 million are also due.”
Louw stated that only R6 million was available in the municipality’s current account.
“In total, Phokwane Municipality has outstanding debts of about R125 million and it is increasingly clear that it is not able to make any down payments on this amount. Instead, debt is increasing on a monthly basis due to interest charged. The mere interest on the Eskom debt calculated at 12.5%, for example, is R6.875 million.”
DA councillor Stan Rudman has attempted to raise the matter with municipal management on numerous occasions, in an effort to help resolve the matter. “However, he has been stonewalled,” Louw said.
He pointed out that the financial crisis in Phokwane had spiralled totally out of control and the municipality needed help from outside to save it. “We are calling on MEC Vass to intervene and make it his responsibility to ensure the financial viability and competency of this institution, as municipal management has failed.”
On Friday, members of the community marched to Phokwane Municipality’s administration seat in Hartswater, where a memorandum of demands was handed over to the mayor.
According to Obakeng Jacobs, one of the organisers of the march, the community expected a response today and would study it and plan the way forward.
“It is evident the municipality’s administration and political leadership has failed the community in regard to Eskom debt, which has resulted in power cuts to the thousands who depend on the energy supply.”