Treasury denies Emfuleni kicked off R6bn debt relief

The National Treasury has bluntly denied intense rumours that the Emfuleni Local Municipality (ELM) has been kicked off its debt-relief programme for noncompliance with programme requirements.

ELM, which has often struggled to pay the salaries of its 2 000 employees, is believed to save up to R50m per month on interest alone on the now-almost R6b it still owes Eskom.

Even so, indications are the embattled municipality has also give effect to a High Court not been able to pay its current Eskom account – for the monthly electricity it receives from the utility.

But being kicked off the treasury programme would have disastrous consequences not only for its recovering financial situation, but also for ELM’s expanding smart meter programme, which is mandatory as a reliable revenue generation and security strategy.

However, ELM has not yet reached an agency agreement with Eskom whereby the bulk utility would take over the management of the municipality’s assets and order allowing business and residents to pay Eskom direct for electricity.

Under such an agreement, Eskom would pay ELM its fair share of electricity revenue, which forms by far the largest part of its overall income.

This court order is over and above the Treasury debt deal and was gained by the Golden Triangle Chamber of Commerce (GTCoC) in mid 2023 and compels both ELM and Eskom to reach an agency deal or revert back to court.

The debt relief programme part of the Eskom debt relief programme, saying ELM Council would have been the first to know hi also makes it mandatory and compulsory for ELM to install smart meters and ELM Council says these will be put in regardless of opposition, although it does hold public participation meetings and consultations on the roll-out of the programme.

The Treasury denial was made in a statement after Vaalweekblad requested clarification from them following persistent rumours from a spectrum of individuals and officials.

ELM Municipal Manager April Ntuli has also denied that the municipality is no longer of any such event. In its statement, treasury said: “No. ELM has not been removed and is participating in the debt relief programme.” ELM Smart meter service provider BXC SA has said it will do new installations of smart electricity and water smart meters in Vanderbijlpark’s SE suburbs and in an area in Sebokeng (only smart water meters) in September after public participation and technical meetings.