The shocking state of South Africa's municipalities, which is a major contributing factor to Eskom's financial problems, is clearly illustrated by the fact that the debt owed to Eskom by just ten municipalities in Mpumalanga amounts to a staggering R12,5 billion.
The FF Plus recently uncovered this after receiving the reply to a question regarding the matter from the Mpumalanga MEC for Cooperative Governance and Traditional Affairs (COGTA), Busisiwe Shiba.
The biggest culprit is the eMalahleni Local Municipality (Kriel, Ogies, Phola, eMalahleni/Witbank), which owes Eskom R5,5 billion.
The other municipalities are:
These figures clearly show that municipalities are not paying the money that they collect from loyal taxpayers for their electricity over to Eskom, but are using the funds for other purposes.
Mpumalanga's government must intervene at once and must put pressure on municipalities to meet their financial obligations to Eskom so as to prevent local economies from going under.
If not, the government will have to shoulder the responsibility for the losses that businesses and residents will suffer if Eskom decides to suspend its power supply to these municipalities.
The notion of intervening by means of administration is not an option in the FF Plus's view, because experience has shown time and again that it only results in even more irregularities and non-payment.
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