Municipalities bleed Eskom and Gautrain strikes continue

Here’s what is happening in and affecting South Africa today:

• Eskom unable to recover R78 billion municipal debt: Energy and Electricity Minister Kgosientsho Ramokgopa has said that municipalities’ R78 billion debt to Eskom is almost certainly irrecoverable. During a briefing on electricity issues, he noted that rising municipal debt, which may reach R3.1 trillion by 2050, is severely affecting Eskom’s operations and its investment in infrastructure. [News24]

• Numsa strike at Gautrain to continue: Some workers affiliated with the National Union of Metalworkers of South Africa (Numsa) will continue on strike action, which began on 8 July. The workers have been asking for a 13% wage hike (changed to 9%) from Bombela Operating company since April, rejecting a 5.6% offer. [EWN]

• PSC warns new ministers against firing DGs ‘for political reasons’: The Public Service Commission (PSC) has warned the 32 new ministers not to fire director-generals (DGs) based on political affiliations. PSC’s Vusumuzi Mavuso said ministers could not come and tell “DGs [they] must just pack and go because they don’t want them and all that. All directors general are appointed on a particular term, a fixed term period. Usually, it’s five years.” [Daily Maverick]

• Gauteng wants to buy a building, but doesn’t know what for: The Gauteng Department of Social Development, facing financial constraints, is planning to allocate up to R70 million for the acquisition of a building in central Pretoria, supposedly to accommodate the homeless. However, controversies arise from leaked documents indicating an early interest in the building, regardless of its use, and discrepancies in the rental value. While the building owner cites a fair rental of R1.5 million, a departmental report suggests R5 million, alongside issues regarding the lack of follow-up and tender procedures with building owners. [GroundUp]

• Markets: The rand strengthened on Monday as risk sentiment improved on bets that an interest rate cut by the U.S. Federal Reserve is close. On Tuesday (9 July), the rand was trading at R18.14 to the dollar, R23.25 to the pound, and R19.68 to the euro. Oil is trading at $86.86 a barrel. [Reuters]