NC municipalities need major intervention to tackle Eskom debt
4 July 2023
Northern Cape municipalities owe Eskom R4,2 billion in outstanding debt. This alarming increase from the R2.8 billion owed this time last year was confirmed by MEC of Finance, Abraham Vosloo, during the Provincial Treasury budget debate.
The debt of Sol Plaatje municipality, the biggest offender in the province, has almost doubled to R720 million.
The situation is out of control, despite promises from provincial government, including the Premier, to address the situation. The MEC of COGHSTA, Bentley Vass, acknowledged in his budget speech that government efforts to stop spiraling municipal debt have not yielded the desired results.
It is further worrying that by 20 June, which is already past the application deadline, only five Northern Cape municipalities had applied for Eskom debt relief. This, while there are 23 municipalities in the province that are failing to pay their debt.