Msukaligwa pays to keep lights on
"If Msukaligwa defaults, power can still be cut"
Following recent anxiously anticipated developments between Eskom and Msukaligwa Municipality regarding their payment arrangement in which an eleventh hour agreement was reached to keep the lights on, the Highvelder can now reveal details of the payment terms and conditions.
The agreement between the two parties became effective on 18 May and will remain in force until the municipality has paid Eskom in full.
On 18 May, Msukaligwa Municipality acknowledged that it was indebted to Eskom in the sum of R112 544 323.78 including VAT and accumulated interest compounded monthly from 21 February 2011 to 18 May 2015 for electricity supplied to the municipality.
The outstanding amount will bear interest, compounded monthly from the due date to date of payment at a rate per annum equal to the prevailing prime rate charged by First National Bank of Southern Africa Limited in South Africa plus five per cent.
“IF MSUKALIGWA DEFAULTES, POWER CAN STILL BE CUT”
The municipality, however, retains the right to repay the debt in full at any given time during the period. The current payment plan does not, however, absolve the municipality from its obligations to pay all the current accounts timeously.
Should the municipality default in the payment of any one of the installments is placed under judicial management or administration or it enters into a compromise with creditors, the full balance owing on the debt at the relevant time will become due and payable.
Should the municipality default at any stage, Eskom may also with due regard to relevant legislation, take whatever legal remedies are available to it, including the disconnection of the supply of electricity to the municipality.
The municipality will be paying about R5-million per month, excluding the monthly current account.
Municipal spokesman Mr Mandla Zwane said for the payment agreement to be successful, both the municipality and the consumers need to play their respective part.
For free breaking and community news, visit our websites:
Ridge Times, Standerton Advertiser & Highvelder
Like our Facebook page and follow us on Twitter.
For news straight to your phone invite us:
BBM – 2667A726
WhatsApp – 0748877590
