Plans underway to help municipalities pay back Eskom
The Minister of Cooperative Governance and Traditional Affairs (COGTA), Zweli Mkhize, says plans are underway to address the debt that is owed to Eskom by municipalities.
“The Inter-Ministerial Task Team on Electricity Reticulation and Distribution (IMTT) took the decision to establish an advisory panel to provide advice and legal clarity on the constitutional authority for electricity reticulation.
“The purpose of the advisory panel is to advise the Minister of COGTA and the IMTT on the constitutional matter related to electricity reticulation, distribution and supply,” said Mkhize.
The Minister was on Tuesday responding to a question posed by the Democratic Alliance in the National Council of Provinces on the action taken to assist municipalities to pay back Eskom.
According to the Minister, as at the end of May 2018, the total overdue debt was R14.319 billion, with the top 10 municipalities owing R9.985 billion.
The top 10 municipalities that owe Eskom are Maluti A Phofung, Matjhabeng, Emalahleni, Emfuleni, Ngwathe, Govan Mbeki, Lekwa, Thaba Chweu, Ditsobotla and Naledi. Seven of these are also listed as dysfunctional municipalities by the department.
According to Mkhize, who is also the chairperson of the IMTT, the team took a decision to resolve the issue of debt by municipalities by focusing on the root cause of the problem.
“The main problems affecting the electricity business and the ability to pay their creditors are the following broken down into three challenges: constitutional, structural and systematic matters on electricity reticulation. These three matters are believed to be the genesis of the problem,” said Mkhize.
Mkhize said the advisory panel is currently finalising the report on the constitutional matter between Eskom and municipalities -- represented by the South African Local Government Association -- on who has the authority to reticulate electricity in the municipal demarcated areas.
The report is due to be submitted to the Minister and IMTT in September 2018. – SAnews.gov.za
Related Stories
The South African Chamber of Commerce and Industry (SACCI)...
Shocking revelations that hundreds of animals have died at the Eastern Cape Government’s six experimental farming facilities...
As each year passes, we give ourselves a set of different, yet...
The milestone in Sandile Gebashe’s career was definitely...
Bizana police on Wednesday appealed to the public to assist the...
In September 1959 the first Valiant was built in South Africa...
A by-election will be held in Ward 55 of the Nelson Mandela Bay Metropolitan Municipality on 05 February 2020 and will be contested by five candidates from five political parties...
Mahindra South Africa is entering a new growth phase in 2020...
The Eastern Cape Government on Wednesday said that it is considering appealing the High Court judgement that ordered the dissolution of the Makana municipal Council. ..
The farming community of Kleinpoort were at a loss for words...
