Last year, Deputy President Paul Mashatile promised cash-strapped municipalities that the government would provide debt relief amounting to billions. According to the National Treasury’s 2024 Budget Review, 72 applications were made by municipalities for debt relief by December 2023.
These municipalities need to comply with set conditions, including enforcing strict credit controls, paying monthly electricity accounts, and enhancing revenue collection for the debt to be written off in equal annual tranches over three years. By December 2023, 72 applications totaling R56.7bn of total municipal debt owed to Eskom were submitted, with 70 applications totaling R55.2bn approved as of January 2024.
Introducing the debt relief program, Mashatile highlighted the concerning culture of nonpayment by municipalities, government departments, and residents. He stated that the government would provide the power utility with debt relief of R254bn over the next three years to address the rising debt.
TimesLIVE