Ben Deysel, of the Harrismith Business Forum, says that the business community is concerned that the implementation of the recovery plan rests squarely on the administrator’s shoulders, who he feels is partly responsible for letting the situation in the municipality get to where it is today. The municipality was placed under administration in February 2017 amid allegations of rampant corruption and financial constraints. Deysel was speaking on the recovery plan proposed by the consultative committee that was formed primarily to get the financially-strained municipality out of debt (which includes close to R 3 billion owed to power utility Eskom).

This consultative committee, which is made up of representatives from government as well as the business community in Maluti, was formed on the back of a Free State High Court bid and subsequent judgment that ordered Eskom to suspend its plans to cut power supply to the municipality indefinitely. Deysel explains that the business community is of the view that outside skills, preferably from the private sector, are needed to help turn the municipality around. The approach taken by provincial and national government is based on empowering the current people employed by the municipality. “But they are the exact people who are responsible for the mess we’re in” says Deysel. He states the business community did add their suggestions to the plan, but reiterated that outside expertise would be needed to turn Maluti around.

Head of the Free State Department of Cooperative Governance and Traditional Affairs (Cogta), Mokete Duma, acknowledges that the representatives of the business community did express their concerns about how realistic the plan is going to be, but says they have since come to the table on the matter. He says the business community stated that it will take years for the municipality to recover from its debt to Eskom. He tells OFM News the consultative committee did meet on November 28, and it appeared that the business community was in agreement with them on the plan. OFM News’ interview with Deysel took place in early December, after the meeting Duma mentioned had already taken place.

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 launch a court bid against 13 government respondents which include Eskom, Ministers of Energy, Finance, Public Enterprises and President Cyril Ramaphosa on the matter. They said the planned interruptions threatened the future of the business community in the area. The full bench of judges – Corne Van Zyl, Mpina Mathebula and Jacobus Loubser – ordered that Eskom shall not seek to terminate, interrupt or suspend the supply of electricity to the Municipality during the implementation of the order and the recovery plan. The utility can return to the court (should the formation of the committee and this recovery plan prove unsuccessful in resolving the electricity supply issues in Maluti). Deysel warns they will approach the courts for assistance should the recovery plan not prove to be successful.

OFM News