POWER CRISIS: Why an Eastern Cape municipality that owes Eskom R890m cannot foot its electricity bill

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Enoch Mgijima municipality is just one of many municipalities in South Africa that does not pay its electricity bill. Municipalities across the country owe Eskom about R50-billion.

“The majority of the people at the march are stealing electricity. Last week, we promised that we would fix the electricity and we did. We have separated the areas that used to have problems to try [to] reduce the load,” he said.

“The provincial government has for the past four years encouraged the municipalities who owe Eskom to honour their debts, but without success.” In an answer to a parliamentary question, the Minister of Cooperative Governance and Traditional Affairs, Nkosazana Dlamini Zuma, said the national executive must intervene in terms of the Constitution if the provincial executive cannot or does not adequately do so.

This week, Eskom said the City of Tshwane’s electricity debt now stands at R1.4-billion. The City didn’t pay its entire November bill and didn’t pay for December. This, the Eskom statement said, “negatively impacts the liquidity, financial performance and sustainability of the power utility”.

 

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Simply put it’s a debt spiral that will end badly for everyone

That R50 billion has been stolen

Because its an ANC voting block...

Yet the consumer keeps on paying.

Municipal arrear debt (excluding Soweto) is R57-billion at present, and rising at about R1-billion a month.

Start by firing the municipal managers, mayors and CFOs.

And why don’t municipality’s pay their Eskom_SA accounts? Because MYANC cadres steal the money. It’s that simple.

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