Not only did the Free State municipality confirm for the first time in three days, that it was party to the decision, but management has gone on to defend the terms of said agreement with the nation’s power utility, deeming it the only way to ensure that essential services continue to be delivered to Welkom, Virgina, Odendaalsrus, Hennenman, Allanridge and Ventersburg residents. This doesn’t mean they concede to the debt, Matjhabeng is already in the midst of challenging Eskom’s alleged R3,4 billion debt. OFM News’ Olebogeng Motse reports that this latest chapter in the dispute between Eskom and Matjhabeng has been ongoing since November 2019.

According to Matjhabeng spokesperson, Kgojane Matutle, Eskom approached the Bloemfontein High Court in late 2019, in an effort to recoup its money from the municipality - deemed to be one of its ten worst offending municipal clients. Matjhabeng on the other end of this court action, launched a counter claim, disputing Eskom’s claims that they were owed money for services rendered. However, Eskom approached the inter-governmental dispute resolution forum in order to attach the municipality’s bank account. At the top of September 2020, Eskom emerged successful. In turn Matjhabeng, being desperate and unable to access the bank account, proposed the idea of putting up the 139 farms as security, so that they would be able to pay employees and render services.

Matutle stresses “by putting up the farms as security, the farms have not been transferred to Eskom and Matjhabeng has not lost control or ownership thereof. They may still be used for their intended purpose. Eskom still has to prove its claim, which the Municipality obviously disputes,” says the spokesperson.

The Free State municipality claims that Eskom unlawfully and unconstitutionally “unsurped” Matjhabeng’s powers by directly supplying electricity to consumers, which include “Thabong, farms, and mines in its area” ever since the municipality was established in December 2000. They say this happened despite Matjhabeng being able to on its own, supply electricity “within its municipal boundaries” reads the statement.

Matjhabeng’s counter claim against Eskom for this, now stands at R4,5 million, which is well R1 million more than what Eskom is claiming as debt. And Matjhabeng seems optimistic, their claim will stand.

However, should it not, and should the Bloemfontein High Court side with Eskom on the R3,4 million debt, the municipality has a contingency plan in place, telling media they will still be “entitled to negotiate a repayment plan if the parties cannot come to an agreement, the issue will be determined” coincidentally by the same inter-governmental dispute resolution forum, that gave Eskom the greenlight to attach Matjhabeng’s bank account in the first place.

Eskom is yet to publicly react to Matjhabeng’s allegations.

Meanwhile opposition parties in the province, notably the EFF, have publicly chastised Matjhabeng for putting up the farms as security.

OFM News