Eskom takes legal route to recoup over R1bn in debt from City of Joburg
Eskom said the metro began defaulting on its payments last October, with its debt now sitting at a whopping R1.73 billion.
The Johannesburg skyline. Picture: OLYMPIA DE MAISMONT / AFP
JOHANNESBURG - Eskom has turned to the courts in an effort to claw back over R1 billion from Johannesburg's City Power.
Eskom said the metro began defaulting on its payments last October, with its debt now sitting at a whopping R1.73 billion.
The power utility says it’s been left with no other choice but to take legal action.
The parastatal described the situation as “dire”, saying it undermined Eskom's financial sustainability, and threatened its ability to “maintain essential infrastructure investments”.
City Power reportedly declared a billing dispute, but Eskom said it denied the claims made, and planned on defending its position in an arbitration process.
Eskom insisted that according to the relevant legislation, even if a municipality raised a dispute, it still had to pay.
The case is set to be heard on 4 June.