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Free State's escalating Eskom debt 'a major concern'

───   KATLEHO MORAPELA 08:40 Thu, 30 Jul 2020

Free State's escalating Eskom debt 'a major concern' | News Article

Free State municipalities' Eskom debt now amounts to R12 billion with over 50% of the debt owed by the Maluti-A-Phofung and Matjhabeng Local Municipalities.


This is according to Finance MEC Gadija Brown. Presenting her statement in support of the Cogta 2020/21 budget before the Legislature on Wednesday, Brown said the state of local municipalities in the province is a major concern and it is clear that the non-payment of electricity poses a serious threat to the operation and sustainability of Eskom. She, however, said the problem does not just lie with the Free State as municipalities countrywide owe Eskom more than R28 billion. Brown said they acknowledge how municipalities' escalating debt hampers service delivery to residents and that the Free State Treasury is working closely with Cogta to address the Eskom debt.

"We have so far directed all municipal councils to only adopt budgets that are funded, we are also assisting all distressed municipalities with new recovery plans".

She added that they have also established Revenue Committees led by Cogta to help municipalities generate income and to see to it that all debt is coordinated, amongst others.  

"We will never condone any wrongdoings. We are working together with Cogta to strengthen municipalities and to ensure service delivery," she highlighted.

Brown is today expected to table her own department's 2020/21 budget during a virtual Legislature Sitting.

All eyes will be on how she allocates money to the different projects to address challenges faced in the province including high unemployment.


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