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Court hands 135 farms owned by FS municipality to Eskom over debt dispute

The High Court in the Free State made the order which is part of Eskom's efforts to recover some of the money the Matjhabeng Local Municipality has continuously failed to pay despite receiving bulk electricity for its customers.

Eskom's Megawatt Park offices in Johannesburg on 12 March 2015. Picture: EWN

JOHANNESBURG - Eskom is taking over 135 farms owned by a Free State municipality as security for outstanding debt owed to the utility.

The High Court in the Free State made the order which is part of Eskom's efforts to recover some of the money the Matjhabeng Local Municipality has continuously failed to pay despite receiving bulk electricity for its customers.

The farmland is valued at R2.5 billion.

Eskom has been in court to recover the money since 2014 when the municipality's debt was still at R372 million. Over the past six years, it has ballooned to R3.4 billion.

Spokesperson Sikonathi Mantshantsha: "The title deeds of these farms will be endorsed in favour of Eskom until the debt dispute between Eskom and the municipality is finalised. This agreement has been made the order of the High Court of the Free State division."

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