Five local municipalities owe Eskom R4.4 Billion and to be placed under administration

eMalahleni, Govan Mbeki, Msukaligwa, Thaba Chweu and Lekwa local municipalities will be placed under administration.

Five Mpumalanga municipalities are under consideration to be placed under administration in terms of section 139 (1) (b) of the Municipal Finance Management Act for gross financial mismanagement.

In a meeting with Cooperative Governance and Traditional Affairs MEC, Speedy Mashilo and the Parliament’s Standing Committee on Public Accounts (Scopa), it was revealed that five Mpumalanga municipalities currently owe Eskom a combined total of R4.4 billion – a Billion increase from December 2017. This was confirmed by Cooperative Governance and Traditional Affairs MEC, Speedy Mashilo at the South African Local Government Association during the provincial assembly yesterday.

“Serious intervention is needed to bring financial stability to these municipalities as placing them under administration alone will not solve the problems caused by years of corruption,” says James Masango MPL and DA Cogta spokesperson.

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