The party’s provincial spokesperson, Thabo Meeko, says they acknowledge that some of the municipalities find themselves in a financial rut due to alleged corruption and their inability to generate revenue. He confirms their increasing debts to Eskom and water boards is a matter of great concern, and that the party is currently facilitating discussions between Maluti-A-Phofung together with other municipalities and Eskom on their debts. The cash-strapped Maluti-A-Phofung had its assets attached by Eskom yesterday over power supply debt of more than R2.8 billion. The municipality currently tops Eskom’s list of municipalities that owe it money. It is also listed in the latest Auditor-General report amongst the municipalities that need urgent intervention.

“The instruction we have given the provincial government is that it must continue to help these small depressed municipalities. Whilst Maluti may not be a small municipality, we know that Maluti-A-Phofung has had challenges over a period of time. Challenges of water and electricity have subjected that municipality to difficult conditions because it can’t collect and this has affected its fiscal capacity”.

The municipality has, meanwhile, cited the tampering of electricity meter boxes, and vandalism of electricity infrastructure as the main reasons it fails to honour its Eskom debt.

 OFM News previously reported that the Free State Head of the Cooperative Governance and Traditional Department, Mokete Duma, cited Eskom’s high interest rates as one of the main reasons why this municipality is in dire strain.

OFM News