MEC of Cooperative Governance and Traditional Affairs (Cogta), Thembeni Nxangisa, tells OFM News Centlec has been appointed on an “intermediary basis” and will therefore assist in the provision of electricity to the area, repair of vandalised substations and the replacement of damaged transformers. The power utility is also expected to connect houses without electricity and review or assess Maluti’s meter system so that people are charged fairly explains Nxangisa.

The OFM News team spoke to Centlec spokesperson, Lele Mamatu to gain some additional insight into what the deal entails. Mamatu says they were appointed, a month ago and as a result only a small team is currently on the ground in Maluti-A-Phofung undertaking assessments to ascertain how much work needs to be done exactly and how many personnel they will need. He says “we haven’t got into full swing as yet”. Mamatu is unable to say how long Centlec will be assisting the municipality for, adding that this is the purpose of these initial assessments. Afterwards, each division within the power utility will conduct further analysis, before getting down to do the work.

Maluti’s mammoth debt to Eskom

Maluti-A-Phofung is still in the process of attempting to settle its near R 3 billion debt to Eskom. Cogta head, Mokete Duma told OFM News previously, a large portion of the debt was made up of interest accumulated. He added that low revenue collection and the constant fight against cable theft exacerbated the situation greatly. Bringing in Centlec will help make the necessary repairs to the damage made.

History behind Eskom Recovery plan

Nxangisa says the current administrator, Moses Moremi and the acting Municipal Manager have started implementing the recovery plan drafted by a consultative committee. In October 2018 The Free State High Court ordered today that Eskom’s plans to cut power supply to the Free State municipality be suspended indefinitely in accordance with an agreement made between the applicants, led by the Harrismith Business Forum, and the 13 government respondents which include Eskom, Ministers of Energy, Finance, Public Enterprises and President Cyril Ramaphosa on the matter.

Maluti-A-Phofung’s close to R 3 billion debt to Eskom and the utility’s subsequent threats to cut supply, prompted the Harrismith Business Forum and thirteen other businesses to approach the courts for assistance. They said the planned interruptions, threatened the future of the business community in the area. The High Court further ordered that the respondents from Provincial and National government must form a “consultative committee” whose purpose is to map out a recovery plan for this municipality.  This committee which is made up of representatives from government as well as the business community.

OFM News