Eskom is siding with the Save Emalahleni Action Group in an attempt to recover all their debt from the local municipality.
The group carrying the interest of the local municipality at heart made an application to compel the provincial and national executives to intervene in the municipality’s affairs.
The application was heard on Thursday, June 21.
By agreement the parties postponed to October 9 to 11 to give Eskom an opportunity to file a supplementary affidavit and the other parties to respond thereto.
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From July 1 last year up to May 31 the municipality short paid Eskom R438 980 154.87 in respect of monthly consumption.
On July 1 they owed Eskom R 1 271 479 741.46 and 10 months later on May 31 they owed the power utility R 1 997 758 153.58.
Mr Musa Mabila, acting senior manager: customer services from Eskom in an affidavit stated that they support the proposal by the Save Emalahleni Action Group to initiate a mandatory intervention into the municipal affairs.
“Emalahleni Local Municipality has serious financial problems and there is a crisis in regard to its financial affairs,” he stated.
A mandatory intervention can keep the lights in Emalahleni on. (Photo: Fanie Schoeman).
According to Mabila the municipality is on its own version commercially insolvent, it can not pay its month-to-month bulk electricity consumption account to Eskom.
“Eskom have on numerous occasions requested the provincial executive to invoke a mandatory intervention.”
Mabila said a mandatory intervention will prevent the interruption of bulk electricity supply to the municipality of Eskom is properly consulted by the Municipal Finance Recovery Service who is responsible for the compiling of the recovery plan and strictly complies with the provisions of the approved recovery plan.
Ms Thando Skosana, Eskom stakeholder management and communication practitioner corporate affairs division Mpumalanga operating unit said they can not comment on the article as the matter is in court.
