Cogta must place defaulting municipalities under administration

The Department of Corporative Governance and Traditional Affairs (Cogta) must place municipalities that have failed to pay their overdue Eskom debt under financial administration.

Invoking Section 139 to allow intervention by Cogta and National Treasury will avert implementation of regulated interruptions and disconnections that will negatively affect households as well as productivity of business.

It is a disappointment with those municipalities in the Free State, North West, Mpumalanga and Northern Cape that owe Eskom R10.2 billion.  The North Gauteng High Court on Thursday, the 5th of January 2017, dismissed ¬AfriForum’s application to interdict the ¬disconnections.

The communities and businesses should not be victimised or suffer inconvenience caused either by alleged maladministration or failure of municipalities to honour their financial obligations.  The sound financial management is an enabler for municipalities to deliver quality service delivery.

Eskom must maintain an effective debt recovery and an early warning system that will ensure that debt levels are kept to a minimum.  According to Eskom, the overdue debt has increased tenfold in the last five years with the March 2017, forecast being in excess of R12 billion.