The Herald (South Africa)

East Cape councils owe R1.1bn

- Rochelle de Kock

Eastern Cape municipali­ties owe power utility Eskom R1.1bn.

The biggest culprit is the Enoch Mgijima Local Municipali­ty, which has overdue debt of R309m, followed by Walter Sisulu Local Municipali­ty, which owes R222m.

The debt owed by municipali­ties has, in the past, led to Eskom cutting power to some errant payers.

Details of how much the municipali­ties owe Eskom are contained in a response from department of co-operative governance and traditiona­l affairs (Cogta) MEC Xolile Nqatha to questions submitted by DA MPL Vicky Knoetze.

In his response, he said: “On November 19 2019, [Nqatha] met with the top Eskom defaulters and an agreement was reached to have one-on-one meetings between municipali­ties and Cogta and a task team establishe­d to organise such engagement­s led by Cogta.

“Eskom has agreed to have a roadshow to all municipali­ties starting in December 2019 to discuss issues relating to billing disputes and possible solutions to deal with the debt.”

Nqatha said there was a payment arrangemen­t in place between Eskom and Enoch Mgijima municipali­ty, but it was not being adhered to.

“The Paja [Promotion of Administra­tive Justice Act] processes have been initiated, [and the] interrupti­on date [of power] was to be confirmed after the court case of November 21.

“The action that can be taken by the municipali­ty to prevent electricit­y supply interrupti­on is the payment of R162,421,145 and the remaining R146,953,032 to be on negotiated settlement.”

Knoetze said the DA was concerned the defaulting municipali­ties would have their power supply cut as notices had already been issued.

“The DA believes that cutting the power to these municipali­ties will not put the monies owed in Eskom’s pockets — all it does is punish consumers who have already paid the municipali­ties for the electricit­y.”

Other municipali­ties that owe Eskom include:

● King Sabata Dalindyebo — R165.5m

● Raymond Mhlaba — R148m

● Inxuba Yethemba — R121.8m

● Dr Beyers Naude — R71m

● Makana — R44.9m

● Amahlathi — R8m

● Sundays River — R5.4m

● Great Kei — R3.3m

● Sakhisizwe — R1m.

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