The South African Local Government Association’s (Salga’s) national executive committee (NEC) has welcomed the progress made in reaching a resolution in the matter of the nonpayment of historical debt owed by municipalities to State-owned power utility Eskom.
Speaking shortly after the NEC’s meeting, in Ekurhuleni, Gauteng, this week, Salga president Parks Tau said key to the progress had been recommendations presented to Eskom recently by a Ministerial task team. This had led to the decision by the utility to halt power cuts to affected municipalities.
“The NEC welcomes the progress in the matter and we are now waiting for the Eskom board to confirm acceptance of the tabled recommendations before we can go public on an agreement,” Tau said.
The NEC further welcomed the Presidential Coordinating Council’s commitment to create a dedicated slot in its next session for Salga to present on matters affecting local government and its sustainability, including Eskom and other related sector concerns.
Following the recent announcement of an agreement between government and construction companies that colluded in the procurement of 2010 World Cup infrastructure, and were fined R1.46-billion by the Competition Commission for the anticompetitive conduct, the NEC has resolved to seek an urgent meeting with Economic Development Minister Ebrahim Patel to discuss reparations for local government.
Tau said local government suffered massive losses because of the anticompetitive conduct.
“We have also resolved to interact with all the municipalities that were affected to receive all the necessary reports of the work they have done regarding this matter,” he said.