Mzwandile Masina says Ekurhuleni did not default on bulk purchases on his watch
The former Ekurhuleni says that under his mayorship the city never defaulted on bulk purchases as they were ‘strategic priorities’
Former Ekurhuleni mayor Mzwandile Masina has weighed in on the municipality’s alleged R544m Eskom debt, claiming that under his mayorship the city never defaulted on bulk purchases as they were “strategic priorities”.
The power utility said in a statement on Monday that the City of Ekurhuleni owed it R544m, which continues to escalate. This was despite the partial payment of R530m of its bulk account towards a debt of more than R1bn.
Eskom said its attempt to resolve the matter with Ekurhuleni mayor Tania Campbell has proved unsuccessful as she referred it back to the city’s management.
It said the late payment had resulted in interest of R86m.
“This is in breach of the electricity supply agreement between Eskom and the city and it places a significant strain on the utility’s financial performance and sustainability.
The city denied it failed to service its account with Eskom and urged the company to withdraw its statement.
“To protect the reputation and integrity of the City of Ekurhuleni, the city shall not hesitate to initiate litigation against Eskom over the non-compliance with the provisions of municipal finance legislation and has already written to Eskom to publicly withdraw their statement.
“This action is also intended to ensure that electricity supply to residents is not unlawfully disrupted. A crucial aspect to the dispute, and which was already addressed with Eskom, is the incurring of interest charges of approximately R86m. This amount is strenuously defended. The City of Ekurhuleni still believes that an amicable conclusion can be reached between itself and Eskom to end the current impasse,” said the city.