The lifeline Eskom has thrown to the Emfuleni Local Municipality to help it repay its billions in outstanding debt is commendable, but the FF Plus is doubtful that this Municipality will honour its most recent repayment agreement.
Eskom indicated this week that it wants to enter into a repayment agreement with Emfuleni to settle its electricity debt of R1,2 billion.
Emfuleni also applied to the National Treasury for debt relief to settle its historical electricity debt.
The agreement with Eskom stipulates that the Municipality must make a payment of between R50 million and R145 million three times a year.
If Emfuleni’s debt-relief application to the National Treasury is successful, it must pay, in exactly twelve months’ time, an agreed upon amount to Eskom after which a third of its debt will be written off.
This application applies only to the Municipality’s historical debt to Eskom, and Emfuleni remains responsible for paying its monthly Eskom bill.
Eskom and Rand Water have already attached Emfuleni’s bank accounts and the attachment is lifted just once a month so the Municipality can pay salaries.
At the end of May, a mere R120 million was made available for this.
No money was paid over to pension funds, SARS or for housing benefits. Another R170 million is needed to cover that.
Emfuleni very rarely, if ever, honours its repayment agreements with bulk service providers, so, the FF Plus cannot see how the Municipality will keep to this agreement.
The ANC has looted and mismanaged Emfuleni to such an extent that the only hope for residents is to get rid of the ANC.
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