POWER STRUGGLE
Municipal debt to Eskom balloons to R17bn
As minister Zweli Mkhize attempts to broker a cabinet-sanctioned deal to break the impasse, the amount owed to Eskom by defaulting municipalities has ballooned to R17bn at the end of September. Mkhize, who heads the co-operative governance and traditional affairs ministry, appeared before parliament’s standing committee on public accounts on Tuesday along with an advisory panel he set up to report on the stand-off, which has seen Eskom cutting off the electricity supply to entire towns, prompting businesses to go to court to have power restored. Municipal debt is growing exponentially. In March it stood at R13.57bn. The debt crisis has exacerbated Eskom’s weak financial position as it struggles to regain a sustainable footing. While Mkhize stressed that Eskom was co-operating fully with the process, advice from the advisory panel indicated the matter would not be resolved in a way that satisfied Eskom. Mkhize plans to table the recommendations in cabinet committees at the end of Nov...
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.