20 businesses in Thaba Chweu, Mpumalanga consider closing

More than 20 national anchor businesses in the Mpumalanga municipality have indicated that they would possibly not renew their yearly lease contracts at various letting agencies in town, should drastic action not be taken to improve service delivery from Thaba Chweu Local Municipality (TCLM), Steelburger News reports.

This also includes the Eskom disconnections which have been crippling the town for the past three months.

Anchor or key tenant stores are always one of the larger stores in a shopping mall or centre and usually a department store or a major retail chain whose prestige and name attracts other tenants and, it is hoped, shoppers.

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According to Yvette Labuschagne, an attorney handling several lease contracts for businesses in town, Lydenburg is facing threats from tenants who are not willing to renew their lease contracts.

“This is on account of the municipality’s ongoing service delivery problems. Drastic intervention is necessary to prevent an economic disaster in this town.”

The town has now entered its third month with continued electricity disruptions twice a day. Businesses have been feeling the crunch of the disconnections. On weekends, businesses and households are left without power from 08:30 to 11:00 and again from 15:00 to 17:30.

According to Eskom’s national spokesperson Khulu Pasiwe, the situation is worrisome. “It has been three months that residents and businesses have been subjected to the disconnections and no agreement has been reached between the municipality and Eskom.

“They have not come up with a plan for repayment. We have to stipulate that our doors are open for discussion, but as of yet, no agreement has been reached. People who are paying customers are being subjected to the disconnections and they shouldn’t be going through this.”

Phasiwe said the fact that businesses are threatening to leave on account of the Eskom debt is regrettable. “We, unfortunately, have no other option. TCLM used our electricity and the debt incurred has not been paid.

“That is not how you run an organisation (municipality).”

He said that extended disconnection hours was not on the cards as yet, but could not be ruled out. He further stated that it was unlikely that the matter will be resolved before Christmas.

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