Risk of power cuts
As NC municipalities’ debt soars
NORTHERN Cape municipalities are collectively indebted to Eskom to the tune of over R5.1 billion, as of June 2024
This startling figure was confirmed by the Department of Co-operative Governance, Human Settlements and Traditional Affairs (Coghsta) in response to questions from the DA, according to Gizella Opperman, the DA’S provincial spokesperson on Coghsta.
Opperman pointed out that the debt had surged dramatically compared to the amount of R2.68 billion that was reported by the auditor-general in June 2023.
“The situation is critical, with R4.5 billion overdue for more than 90 days,” she said.
“The auditor-general’s report also reveals that 61 percent of the Province’s municipalities are in severe financial distress.
Alarmingly, 92 percent of municipalities cannot meet their 30-day payment obligations and are struggling to manage their financial commitments.”
Opperman warned that Eskom might cut off electricity supplies to municipalities that failed to settle their debts – a move that would have serious repercussions for residents and businesses.
“Residents face the harsh impact of disconnections and businesses are jeopardised by unreliable and expensive electricity,” she said.
Additionally, Opperman criticised the lack of accountability for departments with significant overdue accounts.
She stated that it was unacceptable that ordinary residents faced disconnections if their municipal accounts were only slightly behind, while departments racked up millions in debt without facing any consequences.