Four Western Cape municipalities qualify for Eskom debt write-off

Western Cape MEC for Finance, Deidré Baartman, has praised four municipalities for qualifying for Eskom debt write-offs. Matzikama Municipality will have R37.7 million written off, Cederberg Municipality R15 million, Kannaland Municipality R14.8 million, and Beaufort West Municipality R25.6 million. Baartman highlighted the role of the provincial Treasury’s analysts, who provided oversight, support, and advice to help municipalities comply with Eskom’s conditions.

Energy analyst Chris Yelland explained the initiative, “National Treasury introduced a scheme to write off municipal arrear debt to Eskom under strict conditions. Municipalities had to sign up and adhere to these conditions, with debt write-offs granted after a year if compliance was met.”

However, Yelland noted, “The vast majority of municipalities that joined this program failed to meet their commitments, making the debt relief program largely unsuccessful.”

He further added, “This write-off comes at a cost to Eskom, which loses significant revenue. Part of the arrangement requires municipalities to pay their bills and keep accounts up to date moving forward. These four municipalities have met the conditions, which is a positive outcome for them and Eskom, as it ensures future compliance.”

Yelland again emphasised because most of the municipalities that have signed up for this program failed to meet the conditions, he sees this program as a failure.

Listen to the full interview below:

VOC News

Photo: Pixabay

 

Picture of Lee-Yandra Paulsen
Lee-Yandra Paulsen

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