Western Cape’s Bredell assures that measures in place to reduce municipal debt with Eskom

Western Cape Local Government Department MEC Anton Bredell said that measures had been put in place to reduce municipal debt with Eskom.

Four provincial municipalities have high outstanding debt older than 90 days.

The total municipal debt amounts to R134.7 million for the period ending January this year.

The Matzikama Municipality owes the most money to Eskom – R82 million – followed by the Beaufort West Municipality, which owes Eskom R68 million.

MEC Bredell said that his department, in collaboration with Treasury, had instituted various measures.

“These measures include regular monitoring of debts amounts owed by municipalities as well as ensuring the effective implementation of and adherence to signed payment arrangements between municipalities and Eskom,” he said.

Bredell has pointed out that the Cederberg Municipality owed R37 million – he said that when the Democratic Alliance (DA) took over they managed to reduce the debt and when the African National Congress (ANC) took over for a short period, the debt jumped to R40 million.

“Now, the current mayor is again moving in the right direction and moving down with that. So they’re adhering to the agreement and we’re supporting that. The ANC-run municipalities, I can only pray for them,” the MEC said.

According to data compiled by the department, various municipalities in South Africa were 90 days behind on Eskom payments amounting to R41 billion.

-EWN

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