The Emfuleni local municipality reached an agreement with Eskom on Tuesday, according to which it undertakes to pay its debt to the power supplier.
This is what the Gauteng government describes as an “unfortunate incident that caused a lot of embarrassment” when Eskom seized the city’s assets.
Court order granted to Eskom in 2018 already allows Eskom to recover R615 million in arrears from the municipality in the west of Gauteng. According to Eskom, the struggling government actually owes him more than R2,3bn.
That’s why Eskom CEO André de Ruyter and members of Gauteng’s Department of Collaborative Governance and Traditional Affairs met on Tuesday.
The parties agreed on the following:
- The Emfuleni municipality must pay Eskom R50m by the end of Tuesday.
- When Eskom receives the money, he will stop the seizure of assets.
- Joint teams will work out a workable and acceptable plan on how Emfuleni will settle its debt.
According to Lebogang Maile, Gauteng MEC for Collaborative Governance and Traditional Affairs, the meeting was honest and relevant, and it was the first step of collaboration between different government entities to improve service delivery to citizens.
Various municipalities in Gauteng collectively owe Eskom R3.7bn. This is with the exception of the Ekurhuleni Municipality, the City of Johannesburg and Midvaal Municipality.