Limpopo municipalities owes Eskom over R220 million

Jacques Smalle (MPL)

DA Limpopo Provincial Leader

At a time when the country’s power supply remains constrained, Limpopo municipalities emerge were one of the highest debtors in electricity payments to Eskom.

The dismal failure by Limpopo municipalities to deal with the increasing trend of overdue debt to the national electricity supplier has led to a shocking total outstanding balance of over R220m.

This is despite Eskom’s attempts to assist all municipalities in the country with payment agreements.

Eskom’s presentation to the Department of Energy last month, proves that Eskom was willing to be lenient to extend its payment period from 15 to 30 days, however 26 Limpopo municipalities took this opportunity for granted.

Various issues such as financial skills of municipal managers, municipal billing, tariffs implementing of a proper credit policy has led to municipalities using electricity income to fund operational matters.

This has been seen in the owing top five municipalities such as Thabazimbi, Polokwane, Makhado, Mookgopong and Greater Tzaneen municipalities.

The DA call for the Treasury to work with COGHSTA to come up with urgent remedial steps that will improve financial assistance and accounting practices in order to limit municipal risk factor.