By Levy Masiteng
Four municipalities in the Northern Cape have qualified for more than R354 million in Eskom debt relief after meeting the requirements of the Municipal Debt Relief Programme, the Provincial Treasury confirmed.
“Sol Plaatje Local Municipality, which owed Eskom R744 million as of March 2023, will have R248 million written off,” said Kgalalelo Matsime, media liaison officer for the Northern Cape provincial government.
She added that Umsobomvu Local Municipality, which owed R7.7 million, will see R2.5 million of its debt relieved. Ubuntu Local Municipality, with a debt of R89 million, will have R29 million written off, while Siyancuma Local Municipality, which owed R227 million, will be relieved of R75 million.
According to Matsime, the municipalities qualified for the relief by meeting 86% of the programme’s conditions. These included cutting unnecessary expenditure and ensuring monthly Eskom accounts were paid on time.
The Municipal Debt Relief Programme, introduced in February 2023, is designed to help municipalities manage debt obligations to Eskom while strengthening the utility’s balance sheet.
“We congratulate these four municipalities in the province for enforcing basic financial management practices as envisaged by the legislation, and the positive behavioural change,” Matsime said.
“This is a testament to their dedication and commitment to financial discipline.”
She noted that the provincial government will continue to support other municipalities still participating in the programme, “…while strengthening the measures for this first group to qualify for the second debt write-off until the debt is completely written off. This would bring financial viability to our municipalities and improve cash flow.”
Matsime explained that by writing off debt and promoting financial discipline, the programme aims to enhance cash flow and financial sustainability in municipalities, ultimately benefiting the communities they serve.
“We are delighted to see the progress made by these municipalities and look forward to supporting others in achieving similar success,” she added.
The debt write-off will be activated in Eskom’s financial system within 30 days of the National Treasury’s confirmation letter.
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