Millions owed to Eskom by embattled EC municipalities

Embattled electricity utility Eskom is owed more than R222-million by Eastern Cape municipalities, of which R161-million is considered overdue.

This emerged in the reply to an oral question put to Cooperative Governance and Traditional Affairs MEC Fikile Xasa by the DA.

The bulk of the R161-million is money owed to Eskom by 11 ANC-led municipalities, said DA MPL Ross Purdon.

In total, eight municipalities had accounts outstanding for more than 60 days, seven outstanding for more than 90 days, and 28 municipalities had overdue accounts of more than 120 days, said Xasa.

Topping the list of debtors is the beleaguered and broke Grahamstown-based Makana municipality which, as of January, owed Eskom almost R60-million – R53.5-million of which is overdue.

Makana was placed under administration last year but Purdon questioned whether this, and the appointment of administrator Pam Yako, has helped.

Purdon said 40% of Eskom’s electricity was being sold directly to municipalities.

Co-operative Governance Minister Pravin Gordhan in August last year revealed that municipalities across the country owed Eskom some R10.8-billion.

Eskom insisted questions be e-mailed. A response had not been received at the time of writing.

Yako had also not yet responded to e-mailed questions.

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