Eskom attaches Emfuleni bank accounts to ensure R8bn debt is paid

Eskom announced on Wednesday that the sheriff of the court had successfully attached Emfuleni municipality’s four bank accounts to ensure that the money collected for electricity was paid directly to Eskom.

The R8bn owed to Eskom by Emfuleni for bulk electricity represents about 10% of the total R82bn owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom.

“The attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers,” the power utility said. 

Eskom said it had exhausted all legal and mediation avenues to secure payment for services rendered since 2018. 

“Collecting municipal debt is a key focus for Eskom. The company will employ various strategies to recover owed funds, enabling investment in maintaining and strengthening electricity supply, fostering socioeconomic growth, and reducing the need for interventions such as load-shedding.” 

The power utility said it could not financially sustain the electricity debt of the municipality without severely harming its own operations. 

DA member of the provincial legislature Nico De Jager said Emfuleni’s failure to pay for bulk electricity compromised Eskom’s financial stability and its ability to provide affordable electricity and the utility’s action would have devastating consequences for the residents who had consistently paid for their utility services.

“Despite the provincial co-operative governance and traditional affairs (Cogta) department taking over the administration of Emfuleni in 2018, there has been little to no improvement in the municipality’s financial management and service delivery. This action by Eskom will undoubtedly lead to a complete collapse of service delivery in Emfuleni.

“Residents who have diligently paid their bills will now find themselves without essential services, through no fault of their own. The municipality’s inability to access its funds will also jeopardise the payment of salaries to municipal staff, potentially leading to strikes and further deterioration of services,” De Jager said.

“The current crisis in Emfuleni is compounded by the ongoing environmental disaster, with raw sewage flowing directly into the Vaal river due to collapsed infrastructure. The failure to pay Rand Water further exacerbates the water crisis in the region. Adding insult to injury, Cogta’s ill-conceived plan to incorporate the well-run Midvaal municipality into the dysfunctional Emfuleni municipality threatens to destroy the last bastion of hope and good governance in the area. This move will inevitably drag down service delivery standards in Midvaal and erode the progress made there,” he said.

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