Makana frogmarched into Eskom payback

The lights will stay on in Makhanda – for now.

Eskom and Makana municipality have concluded a payment agreement that will see the local authority paying the power utility some R44m in total.

The agreement was made an order of the Grahamstown high court on Thursday, meaning the municipality could be found in contempt of court if it reneges on the deal.

According to court papers, the municipality has reneged on several other payment plans it has signed with Eskom.

The agreement will see Makana paying Eskom some R7m in six instalments between now and March 2022.

The municipality’s hand was forced when the Grahamstown Residents’ Association (GRA), Grahamstown Business Forum and local businesses resorted to court to interdict Eskom from carrying out its threat to introduce bulk electricity supply interruptions.

Despite being a respondent in the case, Makana municipality did not brief counsel to represent it. This left Eskom and the other parties in the case free to put together a court-sanctioned plan to force it to pay its massive debt.

In subsequent meetings between the parties and the municipality a payment plan was forged. Apart from paying off R44m in six large instalments, the municipality has agreed to keep up with its current bills.

If it defaults on any of its scheduled repayments, the municipality has agreed Eskom can take judgment against it.

If this happens, the full amount will become immediately due and payable. Eskom will also then be free to take any legal remedies available to it, including switching off the bulk electricity supply to the city.

Unfortunately for ratepayers, the order of court also stipulates that Makana municipality must pay the hefty legal costs incurred by both Eskom and the businesses who brought the application in the first place.