Free State Municipality's assets claimed over R2.8bn unpaid Eskom bill

Free State Municipality's assets claimed over R2.8bn unpaid Eskom bill

The Maluti-A-Phofung Local Municipality in the Free State saw it's movable assets attached after it failed to pay Eskom R2.8 billion in debt owed. The assets included office furniture as well as vehicles.

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After failing to pay Eskom the R2.8 billion it owes, Maluti-A-Phofung Local Municipality's assets were attached by the office of the Sheriff.

The municipality issued a statement on Wednesday, 15 March that confirms the Sheriff was there to carry out a writ of execution.

The assets that were claimed included office furniture and vehicles, as reported on by IOL News.

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According to Kedibone Sentle, the municipality's Media and Communications Manager, the writ of execution comes after a legal process that was started back in 2014.

"In 2014, Eskom issued a notice to interrupt the distribution of electricity supply and the municipality approached the court with an application to interdict that planned interruption of electricity service.
"This matter has been in and out of court since 2014 and on December 16, 2017, the court ordered the municipality to enter into a repayment agreement for the outstanding debt, which amounted to R2.4 billion at that time."

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However, Briefly.co.za gathered that no agreement was reached between the municipality and Eskom because the power utility wanted the full amount paid while the municipality had a payment plan in mind.

The municipality has since turned to the government for guidance and assistance.

Despite the massive electricity bill, Eskom has not cut the power yet.

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Source: Briefly.co.za

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