The coalition-governed Maluti-a-Phofung Local Municipality’s full payment of its current Eskom account has provided light at the end of a tunnel of complex affairs.
The power supplier has confirmed that the R54 million for February was paid on 1 April, with the municipality avoiding a looming blackout considering that payment was due on 15 March.
“This is the first time in years that the current account was serviced in full. Eskom appreciates this payment and hopes that this is a start to a new chapter,” said Stefanie Jansen van Rensburg, provincial spokesperson.
The next current account payment is expected on 15 April.
“We are pleased to learn that Maluti-a-Phofung’s revenue collection campaign is bearing fruit and that over R134 million has been collected in the last three months. We hope to see more of this being paid to Eskom to make a significant dent in the municipality’s overdue debt.”
Maluti-a-Phofung is governed by a coalition formed by Map-16, the Dikwankwetla Party of South Africa, the African Independent Congress and the African Transformation Movement. The DA and FF Plus play a supporting role in relation to the coalition council.
Jansen van Rensburg has refuted claims that the municipality has a payment agreement with Eskom as a commitment to servicing its current account and overdue historical debt.
“Had that been true, the debt in arrears would not have ballooned to a staggering R6,6 billion,” she said.
The municipality’s debt escalated in the era when the council was ANC-led. This time was characterised by a long and bitter legal dispute between the municipality and the power supplier, which started in 2019. The municipality had its removable assets attached by Eskom to recover monies owed from the historical debt.
“We look forward to engaging the municipality on the payment arrangement, while the current account is paid in full on the due date.”
According to Eskom, Maluti-a-Phofung, Matjhabeng and Ngwathe have high-rate energy usage – consuming R200 million (97 GWh) of energy on average monthly.
Maluti-a-Phofung is listed among the 16 big defaulters, of the 19 municipalities in the Free State, when it comes to bad debt. The others are Matjhabeng, Ngwathe, Nketoana, Phumelela, Mafube, Nala, Mantsopa, Masilonyana, Tokologo, Dihlabeng, Moqhaka, Tswelopele, Setsoto and Letsemeng. The Mangaung Metro has also been listed. Eskom stated that by the end of February it was owed a combined R16 billion.
“The new leadership of the Maluti-a-Phofung council has set a scene, a tone and pace. We took an oath of office and are committed to serve with honesty and integrity,” said Moeketsi Lebesa, chief whip.
“For too long there has been a narrative that this municipality is too dysfunctional to honour its obligations. We are on the right track to change the narrative, and servicing the Eskom account is the beginning to bringing the desired change people want and deserve.
“We are on the right track to enhance this municipality’s role in the South African development landscape.”
