Public Interest SA warns of municipal debt crisis impacting Eskom, urges minister and SALGA to act

By Charles Molele

Public Interest SA has called on Minister of Electricity Dr Kgosientsho Ramokgopa and the South African Local Government Association to take decisive action to hold municipalities accountable for their fiscal responsibilities to Eskom.

This comes after Eskom chief financial officer Calib Cassim warned that municipal arrears were projected to reach R120 billion by 2025/26 if left unchecked because an overwhelming majority of municipalities have failed to comply with Eskom’s debt relief incentive scheme.

“This dismal rate of compliance with Eskom’s debt relief incentive scheme reflects a critical breakdown in financial accountability at the municipal level, further endangering Eskom’s financial sustainability and the national energy grid’s stabilisation efforts,” said Public Interest SA said in a media statement.

“We call upon SALGA to collaborate more rigorously with Eskom to address this urgent matter.”

Public Interest SA said the lack of adherence to payment obligations by municipalities exacerbates Eskom’s operational