Municipality responds to Eskom’s disconnection plans

Randfontein Local Municipality reveals repayment plan.

In response to the herald‘s front page article ‘Eskom to disconnect R’fontein/W’aria’ published on Friday (17 April), Tshidiso Tlharipe the spokesperson for the Executive Mayor of Randfontein Local Municipality issued the following statement:

“Let me take this opportunity to contextualize the issue of arrears debt that Randfontein Local Municipality owes to Eskom and the formal view of the municipality on this issue.

“Factually, Randfontein Local Municipality owes Eskom arrears amounting to R81,7 million. The arrears were accumulated from the period 28 August 2011 till April 2014. We (Randfontein Municipality) were between this periods battling to pay the current account well, which as a result culminated to arrears being accrued.

“The Randfontein Local Municipality since May 2014 till to date has been paying the current account on time and well, and we have as a result drawn a repayment plan which requires the municipality to pay the current account and monthly pay of R3 million towards the arrears.

“We have submitted the repayment plan to Eskom and awaiting their approval.”

The following facts informed the accumulation of arrears:

• National and Provincial departments which are trading their services within the jurisdiction of Randfontein owes the municipality almost R5 million on assessment rates and services;

• Households owe the municipality almost R224 million on assessment rates and services; and;

• Businesses owe the municipality R40 million on assessment rates and services.

Tlharipe continued “The basis of the above elucidated three factors as provided gives clarity on the situation that the municipality finds itself in; we assure the residents of Randfontein that despite these challenges there will be no black out in their space of life.

“We have taken a decision as the municipality to aggressively collect money from institutions and households which owe the municipality, as this approach will enable us to stay afloat and service our debts well.

“We are hopeful that everyone will co-operate with our effort to recoup what is due to the municipality. We want to deliver services to all our residents, pay your services on time, well and honour your repayment debt with the municipality. Your positive action will enable the municipality to honour its debt and service to all of you.”

Some of the comments about the article from the herald’s facebook page:

• Dianne Hartley – Why should pre-paid users suffer too, go after those who’ve failed to pay even for water, sewerage etc. Target them not those that go to the time and trouble to collect their accounts from the municipal offices.

• Anri Smith – Randfontein munisipaliteit is bankrot. Meer as 20 miljoen in die skuld

• Estie Van Wyk – Onregverdig teenoor oor ons wat se rekenings op datum is. Sit die wat nie betaal nie se krag af. Nou moet ons boet vir die munisipaliteite wat nie Eskom betaal nie

• Yolande Geldenhuys – What is going on at Randfontein’s municipality?What have they done with our money?

Related articles:

‘Eskom pulling plug will force businesses to close doors’

Bad news for R’fontein/ Wária municipalities 

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