According to the African Christian Democratic Party (ACDP), increasing municipal debts is a great cause of concern and calls for more efforts to be taken to re-dress issues faced by municipalities across the country. 

The party’s MP, Steven Swart, says municipalities’ failure to pay Eskom places the power utility in a difficult financial situation and it remains of great concern that municipalities in the province are considered the biggest defaulters, owing the power supplier the highest amount as compared to other provinces. 

Municipalities in the Free State collectively owe Eskom more than R7.8 billion, making it the province with the highest Eskom debt.

Swart told OFM News that management of the various municipalities must be placed under pressure to ensure that residents pay for services they are provided with and that municipalities also pay their suppliers in due time.

He says the party is of the view that municipalities’ failure to generate income and pay their debts could soon result in a national crisis.

Swart adds that although municipalities’ failure to honour their payment plans has a negative impact on Eskom, what is more concerning to the party is the billions unaccounted for by Eskom, as well as cost overruns at Kusile and Medupi Power Stations due to corruption.

He reiterates that officials implicated for corruption at various municipalities, as well as Eskom, must be brought to book.

OFM News