The DA in Mpumalanga has called on Premier Mandla Ndlovu to urgently intervene in the worsening financial crisis at eMalahleni Local Municipality, saying the municipality now owes Eskom more than R12-billion.
In a statement issued this week, DA lawmaker James Masango said the party had written to Ndlovu demanding a clear rescue strategy for the struggling municipality.
Masango said the Eskom debt had risen from R990 million in December 2016 to R12.289-billion, while money owed to the municipality had also surged to R12.176-billion.
He further cited concerns raised by the Auditor-General of South Africa, saying eMalahleni posted a R1.69 billion deficit in the 2024/25 financial year, while current liabilities exceeded current assets by R10.08-billion.
‘Place municipality under administration’
The DA wants the premier to invoke Section 139(1)(b) of the Constitution and place the municipality under administration.
But provincial government spokesperson George Mthethwa said the premier was already seized with the matter and concerned about rising municipal debt beyond eMalahleni.
“The premier is extremely concerned about the Eskom debt, facing not just eMalahleni, but a number of municipalities in Mpumalanga,” said Mthethwa.
He said Govan Mbeki Local Municipality, City of Mbombela, Thaba Chweu Local Municipality and Lekwa Local Municipality were among municipalities facing similar pressure.
Distribution Agency Agreement ‘might help’
Mthethwa said one of the main solutions under consideration was Eskom’s proposed Distribution Agency Agreement, which was discussed at the Premier’s Coordinating Forum earlier this month in Ehlanzeni.
He said the agreement would help municipalities improve electricity operations, revenue collection and payment performance.
“The premier has since directed the Department of Cooperative Governance, Human Settlements and Traditional Affairs, Provincial Treasury, the districts and South African Local Government Association to discuss the agreement with Eskom,” he said.
Mthethwa added that provincial departments had also been instructed to settle debts owed to municipalities so some of the funds could be used to reduce Eskom arrears.
He said municipalities were also pursuing defaulting customers and disconnecting illegal electricity connections in a bid to slow the spiralling debt crisis.
Visit SW YouTube Channel for our video content
- The DA in Mpumalanga urges Premier Mandla Ndlovu to urgently intervene in eMalahleni Municipality’s financial crisis, where Eskom debt has surged to over R12 billion.
- DA lawmaker James Masango highlighted a growing debt gap, with Eskom owed R12.289 billion and the municipality owed R12.176 billion, plus a R1.69 billion deficit and liabilities surpassing assets by R10.08 billion.
- The DA requests the municipality be placed under administration under Section 139(1)(b) of the Constitution.
- Provincial government acknowledges the debt crisis affecting multiple municipalities and considers Eskom’s Distribution Agency Agreement to improve electricity management and revenue collection.
- Efforts to reduce debt include discussions on the agreement, provincial departments settling debts with municipalities, pursuing defaulting customers, and disconnecting illegal electricity connections.
In a statement issued this week, DA lawmaker James
He further cited concerns raised by the Auditor-General of
But provincial government spokesperson George
“
He said Govan
He said the agreement would help municipalities improve electricity operations, revenue collection and payment performance.
“
He said municipalities were also pursuing defaulting customers and disconnecting illegal electricity connections in a bid to slow the spiralling debt crisis.
Visit SW YouTube Channel for our video content
