WC municipalities’ Eskom debt written-off

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Eskom has written off more than R90 million worth of historical debt for four Western Cape municipalities.

According to the Provincial Local Government MEC Anton Bredell Matzikama qualified for a write-off of almost R38 million while Beaufort West shaved off more than R25 million from the money owed to the power utility.

The Cederberg and Kannaland had around R15 million written off. Bredell says these amounts represent one third of the total debts owed to Eskom and afford the municipalities fiscal space to re-direct their resources to service delivery.

He adds that as these municipalities continue to honour their commitments to Eskom, they will be eligible to have the remaining two thirds of debt written off over the next two years.

The municipalities have been encouraged to improve on financial discipline.

The Western Cape Finance MEC Deidré Baartman note that Eskom’s debt relief programme has a lengthy list of conditions which are monitored monthly by the provincial Treasury.

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