State-owned company Eskom workers protest at the Megawatt Park in Sunninghill, workers are protesting against the companys decision not to increase wages this year. Johannesburg. Picture: Itumeleng English/African News Agency (ANA)
Pretoria - The City of Tshwane has finally settled its R878 million debt to cash-strapped Eskom after the power utility rejected an offer to enter into a payment plan.
The money was due on June 17 but the City failed to meet the deadline and offered to pay in instalments, an offer which was rejected.
The metro only managed a payment of R10m on June 23 and R20m on June 30.
“We can confirm that we paid @Eskom_SA an ammount of R876 296 947.97 today at 10:24:08. We hope that the power utility will provide the people of @CityTshwane with constant and reliable power supply,” the City wrote on its Twitter page.
We can confirm that we paid @Eskom_SA an ammount of R876,296,947.97 today at 10:24:08. We hope that the power utility will provide the people of @CityTshwane with constant and reliable power supply.
— City of Tshwane (@CityTshwane) July 7, 2022
Eskom also confirmed in a statement that it has received money from the City.
“We thank the City for the amount paid and trust that it will honour its future payments,” said Daphne Mokwena, Eskom senior manager for customer services in Gauteng.
In the latest Municipal Finance Management Act report for 2020/2021, Auditor-General Tsakani Maluleke said: “As cash-strapped consumers fall behind on paying municipal rates and taxes, credit-rating agencies are flagging an increased concern around the likelihood of metros being unable to meet their debt payments or source cash from capital markets to meet future obligations due to falling revenues.”
Maluleke said the debt of metros that was unlikely to be recovered in full ranged from 53% to 88%.
“Although some of these metros have cash reserves, its further use to make up revenue shortfalls will reduce the metros’ capacity to meet future debt obligations as they fall due,” she said.
IOL