Vaal economy suffers due to Eskom debt crisis
Despite the Covid-19 lockdown having punched a R100 million hole into Emfuleni local municipality revenues, organised business has demanded the local authority and Eskom immediately resolve the R2.3 billion debt crisis to help the Vaal economic recovery, reports Vaal Weekblad.
The municipality and Eskom are still, after months, locked in discussions without a payment plan in sight and this destabilised business efforts to restore the regional Vaal economy hit hard by the Covid-19 lockdown, said Golden Triangle Chamber of Commerce
chief executive Klippies Kritzinger this week.
The chamber has also demanded greater transparency by Eskom and Emfuleni on how exactly they plan to find an affordable and sustainable solution despite the hugely negative impact on the local economy of the lockdown.
Emfuleni municipal manager Lucky Leseane told Vaal Weekblad the lockdown had cost them R100 million in lost revenue since it began about two months ago and that this factor needed to be fully recognised when assessing the Eskom debt crisis, which erupted before he took office.
Kritzinger was responding to Eskom comments this week that no payment plan was in place, despite months of negotiations with Emfuleni – and that the national electricity provider was keeping open all options.
Eskom has already attached and seized Emfuleni’s moveable property this year, leading to a total breakdown in administration and service delivery – a repeat of which would be disastrous for Vaal businesses and residents.
Now, the chamber and Kritzinger say both Eskom and Emfuleni need to recognise the necessity of crafting an affordable and sustainable payment plan, which will provide revenue to both the municipality and Eskom.
The two bodies need to take business and the public into their confidence and communicate how the debt crisis will be resolved and Emfuleni, especially, should inform the parties involved how it planned to maximise its revenue generation and collection, he said.
Leseane said this week the municipality was in close contact with Eskom and had submitted proposals to the power utility and was awaiting a response.
The issue should be seen within the context of national developments to deal with municipalities indebted to Eskom throughout the country and parliamentary plans to find a national solution. – Caxton News Service