The Economic Freedom Fighters (EFF) in Gauteng has blamed the African National Congress (ANC) for the troubled Emfuleni local municipality’s failure to pay its debt of R8 billion to power utility, Eskom and calls for those responsible to be held accountable.
This comes after Eskom has attached Gauteng’s Emfuleni Municipality bank accounts in a bid to recover R8 billion in arrears.
Yesterday, IOL News reports that, as of the end of August, Emfuleni owes R8,052,093,269.36 for bulk electricity. This is 10% of the total R82 billion owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom.
The decision follows the municipality's failure to comply with a debt relief programme set in place. Eskom explained that the municipality was issued with a notice in July after breaching the Municipal Finance Management Act's Debt Relief Programme.
“Consequently, the Sheriff of the Court has successfully attached Emfuleni’s four bank accounts to ensure that the money collected for electricity is paid directly to Eskom,” the utility said in a statement.
It has said the municipality the attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers.
Eskom says that it has exhausted all legal and mediation avenues to secure payment for services rendered since 2018.
“Eskom cannot financially sustain the electricity debt of the municipality without severely impacting its own operations and the citizens of the country,” the utility added.
“The municipality’s failure to pay for bulk electricity compromises Eskom’s financial stability and its ability to provide affordable electricity.”
Eskom explained that collecting municipal debt is a key focus and it will use various strategies to recover funds.
“Municipal debt remains one of Eskom’s biggest challenges. As of the end of March 2024, municipal arrears stood at around R74.4 bn, with an increase of approximately R15.9 bn during the last financial year.”
Meanwhile, EFF’s provincial chairperson in Gauteng Nkululeko Dunga said over the past six years, the municipality has failed to meet its financial obligations for bulk electricity supplied by Eskom.
“This failure stems from the municipality's inability to collect revenue and its poor financial management systems.”
Dunga said the municipality is among the top three municipalities with the highest debt to Eskom and recently received a qualified audit opinion due to its poor financial management systems and outstanding debts to both the power utility and Rand Water.
He blamed the municipality's ongoing financial difficulties on persistent corruption scandals involving ANC officials.
“The severe mismanagement in the Vaal is a direct result of the ANC's patronage and clientelism, with the Gauteng provincial government’s inability to implement effective interventions because it is their ANC comrades and friends who are responsible for the mess in Emfuleni.”
Dunga said the provincial government has failed to address the situation, resulting in poor service delivery issues and contributing to the deterioration of infrastructure, which was shown earlier this year by the water contamination issue in Evaton.
“The municipality's situation has deteriorated further, leading to the loss of the Municipal Financial Management Act (MFMA) 124 Debt Relief programme due to repeated breaches. It has also failed to meet the requirements of the National Treasury's debt relief programme, prompting Eskom's decision to attach its accounts.”
According to Dunga, the previous Section 139 intervention by the provincial government, which placed the municipality under administration between 2021 and 2023, has also failed to resolve the problem.
He said Eskom's decision to attach the municipality's accounts, while a last resort measure due to the R82 billion owed by municipalities, “will unfortunately not resolve the municipality's problems and will further strain the delivery of essential services to Emfuleni's residents”.
Dunga said the EFF will utilise its influence and collective wisdom in the Emfuleni council, Sedibeng District Municipality, Gauteng Provincial Legislature, and Parliament to advocate for necessary interventions and hold those responsible accountable.
IOL Politics