Eskom attaches Emfuleni Municipality’s bank accounts to recover R8 billion in debt
The move follows the municipalities' failure to comply with the National Treasury’s debt relief programme.
Picture: Xanderleigh Dookey-Makhaza/Eyewitness News.
JOHANNESBURG - Eskom has attached the Emfuleni Local Municipality’s bank accounts to recover R8 billion in debt.
The move follows the municipalities' failure to comply with the National Treasury’s debt relief programme.
Emfuleni is among the country’s most dysfunctional municipalities having been placed under administration.
Eskom says the Emfuleni Local Municipality is no longer a beneficiary of the Municipal Finance Management Act debt relief programme due to multiple breaches.
"The attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers," said spokesperson Daphney Mokoena.
As of last month, she said, the municipality owed Eskom over R8 billion for bulk electricity.
"This amount represents10% of the total R82 billion owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom."
Municipal debt remains the biggest thorn in Eskom’s side – with arrears at about R74.4 billion at the beginning of this year.