In a statement, Eskom said the R1.3 billion was part of a total debt of R1.9 billion which the local government had accumulated in 2019. Picture Henk Kruger, Cape Argus.
In a statement, Eskom said the R1.3 billion was part of a total debt of R1.9 billion which the local government had accumulated in 2019. Picture Henk Kruger, Cape Argus.

Eskom wins R1.3 billion summary judgment against Emfuleni local municipality

By BR Reporter Time of article published Sep 3, 2021

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POWER utility Eskom has announced that it has won a summary judgment against Emfuleni local municipality for the R1.3 billion which the municipality owed the power utility for unpaid bulk electricity services back in 2019.

In a statement, Eskom said the R1.3bn was part of a total debt of R1.9 billion which the local government had accumulated in 2019.

"Eskom had already won judgment for R615 million which kept compounding unabated due to the municipality’s poor servicing of its electricity account. Assets belonging to the local municipality were subsequently attached in an attempt to recoup the debt in line with the court order," it said.

According to the power utility, to date, Emfuleni’s total debt stands at a staggering R3.5bn, including the current account bill of R385m due today, 2 September 2021.

Gauteng customer service senior manager Daphney Mokwena said: “The current summary judgment provides us with several options to recover the debt owed to us. We could attach and transfer Emfuleni's electricity infrastructure which comprises their electricity substations and power lines, and offset the value of the infrastructure against the judgment debt and/or attach known electricity revenue streams of the municipality by way of garnishee-type of orders."

Eskom said Emfuleni ranks as the highest among Gauteng municipalities with poor payment levels and arrear debt greater than 30 days of more than R3bn.

"The Emfuleni municipality is followed by Merafong local municipality with over R570m, Randwest local municipality above R510m, the City of Tshwane above R200m, and City of Ekurhuleni, above R8m. The Mogale City local municipality has signed a payment agreement with Eskom for its outstanding total debt of more than R361m and has been honouring its payments," it said.

“We would like to thank and commend the Gauteng municipalities with good payment records, which are City of Johannesburg (City Power), Midvaal local municipality, and Lesedi local municipality for consistently honouring their payment obligations on time”, said Mokwena.

BUSINESS REPORT ONLINE

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