Eskom had flexed its muscles by disconnecting residents and businesses for several hours a day.

Paul Maseko, Naledi Local Municipality administrator, said, "we really mismanaged that account. That's why the municipality ended up under administration. But that's all history. We have fixed that and now have new arrangements with Eskom and our debtors."

Maseko remains positive that the new revenue enhancement strategy will put some cash on their books to chip away at the debt.

He has called the situation at the municipality a 'financial crisis'.

Maseko says they'll admit to their faults, but others must also shoulder the blame.

He said, "business owes us R64m, staff owe us R2m, councillors about R365 000. Government debt to us like hospitals and education facilities is R17.2m."

DA Council member John Adonis says if the fat isn't trimmed, the ship will sink.

Adonis explained, "the personnel bill is actually more than what our billing to customers are. So we are actually only paying salaries. There is nothing we can pay to Eskom and other creditors."

His advice to national and provincial government is to bail out the municipality, possibly retrench people to stabilise the municipality.

Adonis said, "the plan is for Eskom to get a minimum of R2m a month. At that rate, it will take about 13 years to settle the outstanding R318m debt. In the short term, the lights stay on. In the long term, it's about the municipality sticking to this commitment.

eNCA

Source

eNCA