Central SA
FS municipalities do not keep payment promises─── CATHY DLODLO 13:17 Wed, 11 Aug 2021
Nine municipalities in the Free State have signed payment agreements with the electricity distribution giant, Eskom, to have their power supply restored but only two have not defaulted again.
The Department of Cooperative Governance and Traditional Affairs (Cogta) said in a set of answers on a written question, tabled in Parliament, that seven of the municipalities have breached the agreement.
OFM News reported earlier that Free State municipalities collectively owed the power utility over R12 billion, making it the province with the highest debt, one with the highest number of defaulting municipalities, and now the highest number of those not honouring their payment agreements.
Eskom would, in an effort to collect outstanding debt, cut the power supply to municipalities and reconnect it as soon as a payment agreement was reached. But municipalities keep on defaulting on the agreement and recently it had to go to court to attach the bank account of the Matjhabeng Local Municipality – that includes Welkom - to recover about R3.4 billion owed for bulk electricity supply.
OFM News
