With the large amount of money owed by the local municipality of Maluti-A-Phofung in the Free State to the power utility, Eskom, negotiations are underway between both parties on how to come up with a solution.
The municipality owes Eskom R5.3 billion, which is in turn negatively impacting residents.
According to the Speaker council of the municipality, Tumelo Thebe, the talks between the two parties have concluded with the agreement that Eskom will supply the residents with electricity. He , however denied the allegations that this agreement comes as a result of alleged misuse of funds, political interference, and the lack of resources from the municipality.
He adds that the municipality is a license holder to sell electricity but not to produce it.
Meanwhile, earlier this year, Eskom has attached the municipality’s bank accounts. This happened a few days after the struggling municipality had paid R72 million in an attempt to reduce its R5.3 billion debt. However, the Free State High court ruled in favour of the municipality and instructed the First National Bank (FNB) to release the attachment.
Speaking to OFM News, Eskom’s communication and stakeholder relations practitioner, Titi Makhetha, confirmed that the power utility is in talks with the municipality and the discussions are centred around handing over the electricity supply services and avenue management services.
She however mentioned that no conclusions have been reached yet: “Eskom will make an appropriate decision and announcement once the agreement has been reached.”
She concludes that Eskom wants to recover its overdue debt and also assist the municipality in enhancing its electricity services to the community.
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