Central SA
Dihlabeng’s Eskom debt reaches R1.1 billion─── ZENANDE MPAME 06:00 Thu, 14 Aug 2025

A municipality in the Free State has allowed its Eskom debt to grow from R74 million to R1.1 billion over nine years.
Dihlabeng is determined to turn the situation around to correct financial mismanagement, but this could take at least five years. The municipality has been under Eskom debt relief since December.
The Eskom debt was R 1.1 billion at the end of the 2023/24 financial year, while payments to Eskom amounted to R97 million in the 2022/23 and R106 million in the 2023/24 financial years. This was revealed during a virtual parliament meeting with the portfolio committee on cooperative governance and traditional affairs (Cogta), the standing committee on public accounts, and the standing committee on the auditor-general, along with several members of the provincial legislature on Monday (12/8).
Following a joint oversight visit to the province in July by a joint parliamentary delegation, the aim of the meeting was to wrap up talks with the remaining four municipalities in the Free State.
“The fact that the municipality had been neglecting the payment of the Eskom account for the past ten years to finance its operations,” said Dihlabeng municipal manager Mohau Ntheli. “This has left the municipality in a severe cash flow crisis and with poorly maintained infrastructure.
“To correct the financial position in one financial year is an unachievable target. The municipality is turning the situation around, but to correct the financial mismanagement of the past will take at least five years.”
The municipality has an unfunded budget. The income figures have been overinflated, and the provision for debt impairment has been underbudgeted.
The municipality has addressed the overinflated income figures and budgeted for a 75% payment rate in the 2025/26 budget, he said. The letter written by the municipal manager further stated that payment rates at the municipality have improved from 45% to 70% in 2024/25, but reaching 75% is delayed by government departments owing the municipality R140 million.
If this debt is settled, the municipality can catch up on Eskom payments and benefit from a R300 million write-off under Eskom’s debt relief programme, says the letter.