De Ruyter intervenes personally in R5,3 billion ELM/Eskom debt war
Andre de Ruyter has personally intervened in the growing confrontation between Eskom and the Emfuleni Local Municipality (ELM) over debt recovery measures which last week abruptly cut much service delivery to paying residents and business.
A meeting is expected as soon as this week between de Ruyter and ELM MMC (Mayoral Committee Member) for Finance Hassan Mako to discuss proposals and a way forward out of the present impasse.
The game-changing move by the Eskom CEO follows the seizure of almost the entire vehicle fleet of ELM in a dramatic surprise blitzkrieg operation late last week which effectively paralysed service delivery by the municipality.
The debt recovery operation – based on a R1,3 billion judgment and attachment order obtained by Eskom months ago but long-since challenged in ongoing court action by ELM – has sparked conflict between the two State entities.
MMC Mako confirmed that he last week spoke with de Ruyter, who indicated he would personally facilitate crafting a sustainable resolution in the interests of Eskom/ELM and Emfuleni customers.
De Ruyter’s office also confirmed talks between the Eskom CEO and MMC Mako.
De Ruyter is now awaiting proposals from ELM on how to resolve both the present crisis and the historical and chronic instability in the ELM/Eskom relationship over the years, said MMC Mako.
“I confirm contact between myself and Mr de Ruyter on this issue. “We are thankful for Mr de Ruyter’s kind offer to facilitate an amicable and sustainable solution to the challenges confronting both parties with regard to ELM debt.
“What is especially important to us as a new coalition Government at ELM is that our service delivery capacity – exactly the same capacity which generates revenue to pay Eskom – is restored as soon as possible.
“I can also confirm that we will be meeting Mr de Ruyter – even this week if possible – with proposals on the ELM financial situation and also measures to combat infrastructure predation which destroys the revenue stream of both ELM and Eskom.
Mako emphasised that it was vitally important that harmonious relationships be restored between ELM and other State entities such as Eskom and Rand Water to bring service delivery and revenue generation security.
Paying residents and businesses in Emfuleni have long been the victim of the debt wars with bulk utility providers such as Eskom and Rand Water, whose legal steps to gouge payment has claimed billions intended for service delivery.
Now Eskom’s seizure of ELM’s vehicle fleet has created yet another vicious-cycle crisis for the embattled municipality.
So weak has ELM become financially due to both mismanagement by incompetent officials and huge debt payments that the South African Government was forced to allocate its Water and Sanitation infrastructure to Rand Water in a R7billion refurbishment programme.
ELM says it fully accepts its historical debt burden but is placed in an unacceptable dilemma between service delivery obligations to customers or being bled dry by huge payments to other State entities.
