- South Africa’s Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa’s met with the Free State provincial government and local municipalities yesterday.
- Monday’s meeting outcomes amongst others will develop strategies that will ensure that municipalities are able to meet their obligations to Eskom, thereby ensuring reliable electricity supply for their respective municipalities.
- Ballooning municipal debt of over R100 million is now an existential threat to Eskom. Read more
Free State Premier Maqueen Letsoha-Mathae and the Minister will lead an intergovernmental intervention team with all Municipalities in the province.
“The seventh administration’s commitment towards a functional local government that’s able to meet its obligation is displayed by the approach taken by the three spheres of government. Majority of our municipalities have been put under section 139 intervention of the Constitution in the stead of the Provincial Executive. This stems from historical municipalities debts of both arrears and current accounts to pay Eskom for electricity distribution,” the provincial government said.
The municipalities inability to collect revenue from debtors and maintain sustainable credit control has been influenced by a myriad of reasons which the intergovernmental dialogue will be vested with among many other areas of concern.
“Over the years the situation has worsened and had adverse effect on service delivery within the communities, impacting on operations of corporates, small businesses within those municipalities. The situation needs an integrated approach which will ensure a sustainable intervention plan looking at medium to long term solutions, some of these plans might require financial reconfiguration, particularly given the country’s ongoing fiscal consolidation efforts,” the provincial government said.
Author: Bryan Groenendaal
