By Johnathan Paoli
Eskom has disclosed that 87% of municipalities approved for the National Treasury’s Municipal Debt Relief Programme have not met its conditions, contributing to a staggering R94.6 billion debt burden.
Addressing Parliament, Eskom said that this mounting municipal debt poses a significant threat to its long-term viability, noting a decline in payment levels by municipalities.
The power utility attributed this trend to entrenched structural and systemic issues within local governments.
Eskom’s CFO, Calib Cassim, underscored the urgent need to steer Eskom towards financial self-sufficiency.
“Our concern is sustainability. We cannot continue relying on bailouts. The municipal debt issue is beyond Eskom’s capacity to solve alone. We need coordinated action from the Treasury and Cooperative Governance,” Cassim said.
The power utility revealed the alarming figures during a briefing to Parliament’s Standing Committee on Appropriations, warning that unpaid municipal bills—now at R94.6 billion—remain its greatest financial threat.
Despite National Treasury’s
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