The Democratic Alliance says Municipalities in the Eastern Cape, excluding metros, owed Eskom more than R186 million in arrears as at January 18.
DA MPL Bobby Stevenson said this included the five municipalities – Maletswai (R44.4 million), Gariep (R29.4 million), Nxuba (R32 million), Ikwezi (R10 million), and Inkwanca (R997,000) – that were threatened with disconnection by the power utility in December if they did not service their debts,
According to the reply to a question Stevenson posed in the legislature to finance MEC Sakhumzi Somyo the reasons for the arrears were that these municipalities had a low revenue base, illegal connections, and problems with billing systems. He also conceded that proceeds from electricity sales were used to fund other spending.
Stevenson said the situation is a direct result of poor management in municipalities where consumers pay for electricity and these funds are channeled elsewhere.
He said this is totally unfair and cannot be tolerated and that Eastern Cape municipalities need to be liberated from poor financial management.
