Emfuleni reaches deal over payment of huge Eskom debt

The Emfuleni local municipality said it would resume and normalise all operations starting on Thursday after resolving the attachment of its bank accounts due to money owed to Eskom.

The municipality failed to pay its staff their September salaries after the power utility attached four bank accounts due to an unpaid R8.7bn debt.

This led to hundreds of disgruntled municipal workers protesting in the streets earlier this week, scattering rubbish throughout the town while the municipal head office was barricaded with debris and burning tyres.

The city’s financial impasse was resolved on Wednesday after the intervention by electricity minister Kgosientsho Ramokgopa, finance minister Enoch Godongwana, co-operative governance and traditional affairs minister Velenkosini Hlabisa and Gauteng premier Panyaza Lesufi.

The municipality apologised to residents for the impact of the attachment of its bank account on the provision of services over the past few days.

“The municipality equally wants to apologise to all employees for the anguish and inconvenience caused by the dispute between Emfuleni local municipality and the power utility,” spokesperson Makhosonke Sangweni said.

A payment agreement was put in place between the municipality and Eskom as Emfuleni could only afford a R150m per month instalment instead of the monthly R250m expected by the power utility.

Sangweni said the municipality appreciated the patience and collaboration of all stakeholders, labour unions and staff during this time.

“It is only through working together that we can do more. We are looking forward to resuming and normalising operations [on Thursday] as all employees are expected to report for duty.”

The attachment of the bank accounts led the municipality to launch a campaign to disconnect electricity from nonpaying residents and businesses for failing to pay for services.

Sangweni pleaded with consumers to pay for their services and stop illegal connections.

“This is a determined call to residential and business consumers to support their democratic government in ensuring that services are rendered as expected, to ensure that Emfuleni local municipality remains a municipality of choice.”

This was not the first time the municipality could not access its bank accounts as they were attached by Rand Water in March 2023 and November 2023 for nonpayment of a R2bn debt.

The cash-strapped municipality, which runs Evaton, Boipatong, Sebokeng, Bophelong, Tshepiso and Sharpeville, was also placed under administration for six months in 2018 due to allegations of maladministration and failure to provide adequate services.

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