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Cogta steps back from municipal debt affairs with Eskom

───   KATLEHO MORAPELA 15:20 Thu, 31 Aug 2017

Cogta steps back from municipal debt affairs with Eskom | News Article

The Free State Department of Cooperative Governance and Traditional Affairs has stepped back from being the middle man in municipals' debt affairs with Eskom.


This comes amidst the power utility’s urgent disconnection notices to several municipalities. Eskom has warned of power cuts as of tomorrow, should municipalities fail to settle their debt or come up with an amicable plan on how they plan to pay. The department’s Ntai Mokhitli told OFM News that they have decided to do away with the big brother syndrome and let municipalities account for defaulting on payment plans.

Meanwhile, several local municipalities are still referring media enquiries to the department.

Mokhitli says they have decided to give municipalities a chance to be able to communicate their own issues, what they need and what they have decided upon with the power utility, because Eskom has entered into an agreement with the municipalities and not with the department.

Eskom’s spokesperson, Khulu Phasiwe, said the Free State province has the biggest number of defaulters, followed by Mpumalanga and the North West.

He said about seven municipalities in the Free State own Eskom over R4.4 billion.

The municipalities of Matjhabeng‚ Moqhaka, Nala, Ngwathe‚ Dihlabeng, Nketoana, and Maluti A Phofung are among those that might face power outages.


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