Durban - The Msunduzi Municipality is in debt to Eskom to the tune of R200 million.
It emerged during a recent council meeting that the municipality was in a financial crisis and was struggling to meet its obligations to some of its creditors, including Eskom.
The municipality now joins the Mooi River and Newcastle municipalities, which are also in debt to Eskom.
In recent months, the council has been taking more stringent measures to collect the money owed it by ratepayers. This includes embarking on a drive to disconnect those in arrears and changing its credit policy, which requires customers to pay much higher deposits before they are reconnected and shortening the period over which they can settle their debts.
DA councillor Sibongiseni Majola said they had been told about the arrears last month.
“I personally called Eskom, they confirmed that there was no dispute with the municipality, which means they are abiding by the payment arrangements.”
Majola said the failure of the council to collect rates and utilities from all residents was the source of its financial troubles
“We are collecting money from only 34% of our customers, the other 66% are using our services for free. In the area where I live, there are mansions worth as much as R11million, yet in reports detailing collections in those areas, the municipality has not collected anything,” he said.
He added that the municipality did not have adequate statistics about the city's indigent.Eskom said it preferred not to engage stakeholders or to conduct any negotiations through the media, especially where there was no dispute.
Municipal spokesperson Thobeka Mafumbatha confirmed the municipality owed Eskom money, but had made arrangements to pay it back.
The Mercury