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Gauteng Premier Lesufi calls on Eskom to write off municipal debt

Published

9 months ago

August 11, 2023

Gauteng Premier Panyaza Lesufi calls on Eskom to write off the municipal debt. Speaking at the provincial energy indaba in Midrand on Thursday, he revealed that municipalities in Gauteng owed the power utility R13 billion, according to EWN.

Lesufi’s call comes in light of the staggering R13 billion debt accumulated by Gauteng municipalities to the power utility. Commending Emfuleni as the sole municipality free of Eskom debt, he highlighted the dire financial situation affecting other local administrations.

In June, news emerged that Eskom was grappling with a nationwide debt of R56 billion owed by municipalities.

Also read: Eskom Seeks More Funding to Expand Power Grid

Lesufi proposed that Eskom adopt a similar approach to the one taken by the National Treasury, which alleviated a portion of the power utility’s debt. He emphasised the necessity of collaborative efforts between Eskom and the Treasury to assist struggling municipalities.

“Eskom has initiated a process wherein municipalities can apply for the remission of their debt. We are exerting pressure on municipalities to engage in this process, and we are concurrently urging Eskom to expedite responses to these applications,” Lesufi noted.

Despite the avenue provided for municipalities to seek relief, Lesufi revealed that merely three out of ten municipalities within the province had taken the initiative to apply for debt write-offs from Eskom. The Premier called for increased cooperation from both sides to resolve the ongoing municipal debt crisis.

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