Johannesburg - Eskom is tightening the noose around Emfuleni local municipality, with the latest demand being that the embattled municipality in the Vaal in Gauteng pays R386 million before December 31, 2022 -- that is eight days from today.
In a letter dated December 20, 2022, written by Mpumelelo Mnyani, a senior retail manager in the Gauteng cluster, addressed to the municipality and copied to the province’s premier, Panyaza Lesufi, Eskom said it could not afford to make any concessions.
Eskom has been on Emfuleni’s case to an extent that it obtained a court order to seize the municipality’s bank account to recoup R1.3 billion owed to it.
In the latest spat between the two entities, Mnyani said Eskom could not afford to offer endless overdrafts to municipalities like Emfuleni.
“Eskom has and continues to suffer major cash flow challenges resulting from non-payment by its customers, largely local government. The municipal debt is simply untenable and detrimental to Eskom, which places South Africa’s (electricity) supply security at risk,” Mnyani wrote.
“Eskom cannot continue to finance the operations of the municipalities with unlimited overdrafts. This necessitates stringent measures to recover monies owed to Eskom.
“The payment proposal contained in Eskom’s letter dated December 14, 2022, is the best Eskom can offer the Municipality, considering all the liquidity challenges faced by Eskom,” he said.
Mnyani then turned down the municipality’s request to delay payments by at least a period of six months.
“Regrettably, Eskom cannot accede to the counter proposal by the Municipality to further delay the payment of R386 305 846 by another six months, and confirm Eskom’s request that the Municipality must settle this long-overdue amount by no later than December 31, 2022,” he wrote.
“More so that this aforesaid amount relates to the recent months’ unpaid consumption for current accounts. This Municipality’s stance casts doubt on the Municipality’s commitment to settle the arrear debt, and future monthly payments for energy to be consumed.
“History has proven that the Municipality is unable to honour current accounts, as well as honour any repayments of arrear debt. This means that the offer made is not bona fide, considering the historic payment regime.
“Although Eskom notes the response from the Municipality regarding the payment of R71 067 060 due on January 30, 2023 (as per a 2018 court order), as well as a payment plan for the R1.3bn, as per Eskom’s proposal (for the court judgment in October 2022).
“Eskom is concerned about the unintended consequences of the failure by the Municipality to honour the current accounts,” Mnyani told the municipality.
Despite all these challenges, Emfuleni Municipality’s mayor, Sipho Radebe, said they would keep the lights on this festive season, and that they were happy Eskom had handed back their bank accounts.
“Yes, the municipality will be able to keep the lights on and pay its employees, and finally Eskom has uplifted the attachment of the account,” Radebe said in response to IOL, which asked what came next after this rejection by Eskom.
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