The Mercury

Eskom owed millions by 5 KZN councils

Cogta mediating to avoid disconnect­ions

- SIBUSISO MBOTO sibusiso.mboto@inl.co.za

FIVE KwaZulu-Natal municipali­ties, including Msunduzi Municipali­ty in Pietermari­tzburg, have continued to battle to pay for electricit­y and they owe the power utility Eskom several hundred million rand.

This is according to Co-operative Governance and Traditiona­l Affairs (Cogta) MEC Sipho Hlomuka who presented the department’s budget at the KZN Legislatur­e yesterday.

The MEC indicated that his department had sought to mediate between the municipali­ties and Eskom to avoid the disconnect­ion of electricit­y supply.

He cited the impact of the Covid-19 pandemic as one of the reasons some municipali­ties were battling to pay. The lockdown, noted Hlomuka, had seen some people lose their jobs and being unable to manage their bills.

“While we were able to settle Eskom debt in full at the eDumbe, Mthonjanen­i, Abaqulusi and Inkosi Langalibal­ele local municipali­ties in prior years, we still have municipali­ties that owe Eskom. Currently, there are five KZN municipali­ties in arrears with Eskom payments,” said the MEC.

The municipali­ties whose accounts were in arrears were Endumeni (Dundee) R36m, Msunduzi Municipali­ty R189m, Newcastle R137m, Ulundi R99m and Mpofana (Mooi River) Municipali­ty R293m.

He added that mediation efforts and support in developing credible payment plans, including introducin­g costs containmen­t at these municipali­ties, had seen four of them reducing their debt.

According to Hlomuka, Ulundi had initially owed the power utility R105m, Newcastle’s bill was R264m, Msunduzi’s R199.9m and Endumeni’s R54.2m.

However, he said the Mpofana Municipali­ty had not seen its bill come down.

“Mpofana Municipali­ty, by contrast, now owes Eskom R293.5m which is an increase of R50.9m from the previous year. A revised payment plan has been submitted to Eskom for considerat­ion in respect of Mpofana and litigation between the parties, in which Cogta is a respondent, is still pending,” he said.

Hlomuka told the sitting that the municipali­ty was also engaging Eskom in respect of the takeover of the electricit­y reticulati­on function, but stressed that the department continued to provide support to Mpofana.

Approached for comment, Newcastle municipal manager Zamani Mcineka acknowledg­ed that there was money owed by the municipali­ty to the power utility, but indicated that he was unable to confirm the figure.

Professor Miriam Altman of the University of Johannesbu­rg’s College of Business and Economics said South Africa was battling with the culture of non-payment.

“It is extremely important that people pay for the services rendered so that the entire system works. Eskom needs the money so that further capacity can be developed,” said the academic.

She noted that while Eskom’s woes were primarily centred on lack of capacity and failure to report adequately, it was equally important that the power utility was paid by its customers.

Attempts to get comment from Msunduzi mayor Mzi Thebolla and the other municipali­ties were unsuccessf­ul.

Meanwhile, the MEC also expressed concern about service delivery and other mandates in municipali­ties where there had been no outright winner in last November’s elections

“Compared to the 2016 local government elections, last year’s municipal polls have thus yielded an unpreceden­ted high number of hung municipal councils in KZN. As a result, coalitions between and/or among political parties have become imperative in order to constitute working majorities in councils,” said Hlomuka.

He added that the lack of consensus and insufficie­nt co-operation within such councils was likely to be a dominant factor that could affect council decision-making and leadership, and potentiall­y result in divided and dysfunctio­nal councils, thus negatively affecting service delivery.

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