Eskom attach Emfuleni municipality’s bank accounts to recover R8 billion debt

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Eskom has attached Emfuleni municipality’s bank accounts to recover R8 billion in arrear.

The decision follows the municipality’s failure to comply with the National Treasury’s debt relief program set in place. As of 31 August 2024, Emfuleni owes R8,052,093,269.36 for bulk electricity.

This amount represents 10% of the total R82 billion owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom.

Eskom said the Emfuleni local municipality is no longer a beneficiary of the Municipal Finance Management Act debt relief programme due to multiple breaches.

In a statement issued, the power utility said the municipality failed to comply with the requirements of the National Treasury debt relief program.

“The attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers.

“Eskom has exhausted all legal and mediation avenues to secure payment for services rendered since 2018. Collecting municipal debt is a key focus for Eskom.

“The company will employ various strategies to recover owed funds, enabling investment in maintaining and strengthening electricity supply, fostering socio-economic growth, and reduce the need for interventions such as loadshedding, spokesperson Daphney Mokoena remarked.

Mokoena highlighted that Eskom cannot financially sustain the electricity debt of the municipality without severely impacting its own operations and the citizens of the country.

She also stated that the municipality’s failure to pay for bulk electricity compromises Eskom’s financial stability and its ability to provide affordable electricity.

Action taken by Eskom will impact residents

DA Gauteng Member of Cooperative Governance and Traditional Affairs (COGTA) committee, Nico de Jager, said the action taken by Eskom will have devastating consequences for the residents who have consistently paid for their utility services.

de Jager emphasised that despite the provincial COGTA department taking over the administration of Emfuleni in 2018, there has been little to no improvement in the municipality’s financial management and service delivery.

He added; “This action by Eskom will undoubtedly lead to a complete collapse of service delivery in Emfuleni. Residents who have diligently paid their bills will now find themselves without essential services, through no fault of their own.

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“The municipality’s inability to access its funds will also jeopardise the payment of salaries to municipal staff, potentially leading to strikes and further deterioration of services.

“The current crisis in Emfuleni is compounded by the ongoing environmental disaster, with raw sewage flowing directly into the Vaal River due to collapsed infrastructure. The failure to pay Rand Water further exacerbates the water crisis in the region.”