Eskom lifts attachments on ELM bank accounts
The National Treasury, ELM and Eskom have now set up a Special Task Team to handle a wide spectrum of technical, legal and stakeholder engagement issues raised by ELM’s admittance to the municipal debt relief programme.
Eskom has lifted its attachment orders on Emfuleni Local Municipality (ELM) bank accounts after the National Treasury recently granted debt relief on the R6 billion the local authority still owes the bulk power service provider.
Another crucial aspect being handled by the Task Team is how to deal with existing Court judgments against ELM, including allowing Eskom to be paid direct by certain large power users.
Revenue enhancement for ELM and changing a deep-rooted culture of non-payment for services by many Emfuleni businesses and residents are also core compliance issues required by the debt relief programme, according to official Treasury documents in Vaalweekblad’s possession.
ELM spokesperson Makhosonke Sangweni confirmed that Eskom bank attachments had been lifted. Eskom did not respond to requests for comment by publication time.
Removing the bank attachment orders has now seemingly ushered in a new phase of cooperation between ELM and Eskom, after many months of open hostility from December 2022 when municipal funds and assets were seized in a surprise strike.
Eskom also seized the entire ELM vehicle fleet at the same time, which brought service delivery to a halt but triggered the personal facilitation of both Gauteng Premier Panyaza Lesufi and State Owned Enterprise Minister Pravin Gordhan in the crisis.
ELM employee and councillor salaries were paid late on a number of occasions over this period in what was then described by the municipality as ambush and blackmail tactics designed to intercept ring-fenced grant funding paid over by the national Government.
National Treasury’s debt relief programme requires that ELM not only comply with paying its current account to Eskom every month, but also install as many smart meters as possible to prevent paper-based billing corruption and to maximise revenue.
Smart meters are seen by the National Treasury as the best way to benefit both the municipality and consumers simultaneously.
Many municipal pre-paid electricity meters have been bridged by Emfuleni residents, leading to a large drop in revenue for ELM.
Other Treasury requirements of ELM include reporting accurately on indigent households and improving the collection rate for electricity and water and other services throughout Emfuleni.
