Eskom defaulters not new to debt
Some of the municipalities in arrears were on a 2015 list of the Treasury
Some of the municipalities facing Eskom power cuts are among chronic defaulters that the Treasury previously attempted to knock into shape. In March 2015, the Treasury invoked a section of the Constitution to withhold "unconditional" funding to 59 municipalities unless they presented plans to pay a cumulative R12.6bn owed to Eskom and various water boards. Overlooking the South African Local Government Association’s protests that withholding the equitable share was unconstitutional, the Treasury convinced 32 municipalities to comply with its demand and paid out their equitable share. But by November that year, 27 municipalities had breached their payment obligations. "There is a relatively large correlation between the list of 27 municipalities [who breached repayment plans] and those on Eskom’s list," said Treasury spokeswoman Yolisa Tyantsi. On Sunday, Eskom said it had suspended plans to cut the supply of five municipalities after receiving payment from them and agreeing to payme...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.