Power utility Eskom says that it attaching the Emfuleni Local Municipality\u2019s assets after obtaining a R1.3 billion judgement against the municipality over the non-payment of its electricity bills.<\/p>\n
The court order was granted after the municipality failed to settle its debts and arrears, owing Eskom around R5.3 billion.<\/p>\n
Eskom, on Thursday (1 December), went about the municipality attaching assets as per the order, taking vehicles and other equipment.<\/p>\n
Meanwhile, the group has also approached the Department of Cooperative Governance and Traditional Affairs (Cogta) to assist in mediating its debt battle with the City of Tshwane.<\/p>\n
According to Eskom, the debt in Tshwane is continuing to grow “unabated”, and the municipality’s bill has grown to R1.6 billion once again.<\/p>\n
“Tshwane’s bill as at 30 November is R1.6 billion after it failed to pay the September bill of R887 million, which was payable on 19 October, and it is in arrears of R699 million. The October bill of R894 million, which was payable on 16 November, also remains unpaid,” it said.<\/p>\n
The Public Finance Management Act (PMFA) requires that institutions recover what is owed to them, it is for this reason that Eskom sought the intervention of Cogta, it said.<\/p>\n
“The overdue debt has contributed negatively to the liquidity, financial performance and sustainability of the organisation, where Eskom has to borrow to meet its financial commitments.”<\/p>\n
Eskom and Tshwane have had repeated run-ins over non-payment this year. Eskom has repeatedly threatened to cut the municipality off from supply<\/a>, rejecting payment plans emanating from city authorities.<\/p>\n #EskomGauteng<\/a>#EmfuleniAssetsAttached<\/a><\/p>\n We are attaching the Emfuleni Local Municipality\u2019s assets after obtaining a R1.3 billion judgement against the municipality. pic.twitter.com\/7jj3W6BqqI<\/a><\/p>\n \u2014 Eskom Hld SOC Ltd (@Eskom_SA) December 1, 2022<\/a><\/p><\/blockquote>\n\n