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Eastern Cape Municipalities owe power utility Eskom a staggering R4.7bn.
That is according to a written reply from the MEC for Cooperative Governance and Traditional Affairs, Zolile Williams, to questions from the Democratic Alliance in the Bhisho Legislature.
The MEC noted that Makana, Great Kei and King Sabata Dalinyebo Municipalities, have payment arrangements with Eskom, which he said they were honouring.
Williams also said that, in concert with the Provincial Treasury, Cogta was facilitating applications by Municipalities for debt relief in line with an MFMA circular issued by the National Treasury.
He said to date Walter Sisulu Local Municipality had been assisted with its application, which was approved by the National Treasury.
MEC Williams also noted that Dr Beyers Naude Municipality initiated the application process, with others like Enoch Mgijima, Inxuba Yethemba, Amathlati and Raymond Mhlaba Municipalities were "considered by the Province" before being sent to the National Treasury.
DA Shadow MEC for COGTA, Dr Vicky Knoetze, said municipal debt to Eskom has more than doubled over the past two years from just over R2 bn in 2021 to the current R4.7bn.
"Residents suffer from extended load shedding and imposed load reduction strategies due to non-payment, crippling businesses and destroying small towns. Other basic services, most notably water and sanitation, are severely disrupted due to lack of power," said.
Knoetze said spiralling debt is also contributing to South Africa's overall deteriorating fiscal position, which has the capacity to plunge the country into an economic crisis.
She said the biggest offenders with arrears older than 90 days are the Enoch Mgijima Municipality which owes Eskom around R1 billion rand, Walter Sisulu Municipality which owes, R526 million, while Inxuba Yethemba, which owes R452 million, and Dr Beyers Naude LM, R407 million.
"If we are to rescue our small towns from this spiralling Eskom debt, a recovery plan needs to be implemented and electricity payments ring-fenced," Knoetze said.
