WHERE WE GOVERN: Thabazimbi Municipality to pay off R225 million debt to Eskom by Dr Bertie Joubert Cllr - Speaker of Thabazimbi Municipality
Date: 29 November 2017
The unity government in Thabazimbi Local Municipality intends to enter into a payment plan with Eskom to settle their historic debt of R225 million. The amount will be paid off in installments until 2025 by using the municipality’s equitable shares and also direct electricity sales from the PowerCom Metering Africa (PCMA) smart prepaid meters.
A complete report regarding the Eskom debacle was submitted to the executive committee of the municipality and the issue will also be presented during a Special Council meeting on 30 November 2017.
A few weeks ago, the DA rejected Eskom’s plans to impose the electricity limitations in the municipality due to the previous ANC-led administration’s failure to meet its obligations and pay what has been due to Eskom.
After the 2016 local government elections, the unity government in Thabazimbi inherited the debt which amounted to more than R170 million. Since December 2016 to July 2017 , an amount of R38 million was paid towards the Eskom debt, but the interest levied by Eskom made it impossible to pay off the debt and Eskom started with power limitations on 21 September 2017.
Power limitations were suspended by Eskom on 17 November 2017 due to a new agreement that was reached between them and the municipality. Fortunately, the municipality has succeeded in appointing the Municipal Manager, Manager Corporate Services, Chief Financial Officer and Manager Planning and Economic Development, some posts being vacant for years.
Although the previous MEC for Cooperative Governance in Limpopo, Makoma Makhurupetje didn’t give concurrence, the municipality has obtained a thorough legal opinion and informed both MEC Makhurupetje and the Minister of CoGTA, Des Van Rooyen that appointments will continue.
The DA believes that the new appointments will contribute to accelerate quality services to the people of Thabazimbi.