DA wants provincial government to assist municipalities with Eskom’s cut-off

MBOMBELA- At-least four Mpumalanga municipalities will be negatively affected by Eskom’s recent announcement that deeply indebted Municipalities will be cut-off on 5 June 2015.

These include Emalahleni, Lekwa, Govan Mbeki and Msukaligwa local municipalities.

The DA demands that the provincial executive of Mpumalanga consider urgent negotiation with Eskom, to assist these municipalities before the 5th of June. The Provincial Executive has the power to provide guarantees to Eskom, which may avoid power cuts.

According to the second quarter report for municipalities in Mpumalanga: Msukaligwa had R37 899 000 set aside for electricity expenditure, however at the end of the second quarter, the municipality had spent R3 728 000 which is 9.8% of the original appropriation.

Lekwa had not made an appropriation to electricity in the municipality. Govan Mbeki had a main appropriation of R17 500 000 set aside for electricity expenditure, however at the end of the second quarter had spent R4 268 000 which is 24.4% of the original appropriation.

Lastly, Emalahleni had a main appropriation of R10 652 000 set aside for electricity expenditure, however at the end of the second quarter had managed to spend R5 061 000 which is 47.5% of the original appropriation. Emalahleni signed an agreement with Eskom in January 2015, in which Council undertook to repay the amount of about R581 million over a period of 12 months with the first payment due at the end of February 2015 and the last payment at the end of February 2016; however, this cannot be confirmed as Emalahleni remains on the list to be cut-off.

Eskom has stated that Mpumalanga is part of the big three provinces whose municipalities are defaulters in the country. The province’s municipalities owe Eskom R1.5 billion. These figures are concerning to the Democratic Alliance (DA) as they are failing to use their appropriation to settle the debt with Eskom. These municipalities are in dire need of financial management that works for the people and not representatives.

As winter approaches electricity becomes more and more essential to our people, to our children and to our clinics in these municipalities. A complete black-out will have a serious implication on many in these municipalities.

According to the Municipal Finance Management Act Section 139 (1-3), it states that if a municipality is in financial crisis and unable to provide basic services or meet financial commitments, this section can be enacted that mandates a financial recovery plan.

This assistance should not only stop there, but must continue to re-evaluate in the main, the failings of the community to collect revenue, paying its creditors and using its capital budgets to the best of the people.

The DA will also keep a close eye on this and ensure that the best interests of the residents are looked after.