Emfuleni municipality’s finance MMC Hassan Mako explained that the municipality is struggling to pay Eskom’s R8bn debt due to high unemployment affecting revenue collection. The loss of jobs, particularly in the steel industry, has made it challenging to collect revenue. The economic downturn exacerbated by Covid-19 has further hindered revenue assessment. To address this, the municipality is focused on stimulating the economy through projects like the special economic zone and the Vaal River City investment.
Recent actions by Eskom, such as attaching the municipality’s bank accounts, have highlighted the urgent need to address the debt issue. Mako expressed concerns about the impact on service delivery if the debt is not repaid. Although the municipality is unhappy with Eskom’s handling of the matter, they are seeking a legal resolution.
Mako emphasized the importance of collaboration between all levels of government to find a lasting economic solution, as simply dissolving the municipality is not the answer. The ongoing battle with Eskom over the debt has been a long-standing issue for the Emfuleni municipality.
Source: TimesLIVE