Sanco urges Cogta to place municipalities defaulting on Eskom payments under administration
The cooperative governance and traditional affairs department (cogta) should place municipalities that have failed to pay their overdue Eskom debt under financial administration, the South African National Civic Organisation (Sanco) said on Sunday.
“Invoking section 139 to allow intervention by cogta and National Treasury will avert implementation of regulated interruptions and disconnections that will negatively affect households as well as productivity of business,” Sanco national spokesperson Jabu Mahlangu said.
He expressed disappointment with the municipalities in the Free State, North West, Mpumalanga, and Northern Cape that owe Eskom R10.2-billion.
The High Court in Pretoria on Thursday dismissed civil rights lobby group AfriForum’s application to interdict the disconnections.
Mahlangu said communities and businesses should not be victimised or suffer inconvenience caused either by alleged maladministration or failure of municipalities to honour their financial obligations. Sound financial management was an enabler for municipalities to deliver quality service delivery.
“Eskom must maintain an effective debt recovery and an early warning system that will ensure that debt levels are kept to a minimum,” Mahlangu said.
According to Eskom, the overdue debt has increased tenfold in the past five years with the March 2017 forecast being in excess of R12-billion.
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