Gauteng Premier Panyaza Lesufi Says Scrapping Soweto’s Nearly R5bn Eskom Debt Will Drive Economic Development

• Gauteng Premier Panyaza Lesufi wants government to scrap Soweto's electricity debt to Eskom
• The premier added that the written-off debt would allow for development in townships, informal settlements and hostels
• At the end of September 2022, Soweto owed Eskom roughly R4.7 billion in unpaid electricity fees

JOHANNESBURG - The Premier of Gauteng, Panyaza Lesufi, has called for the government to scrap nearly R5 billion owed to Eskom by the township of Soweto.

Lesufi's calls for debt forgiveness came after the government committed to settling Sanral's e-toll debt amounting to billions.

The Gauteng premier called Finance Minister Enoch Godongwana on Twitter to consider scrapping debt in Soweto and other townships.

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Lesufi said debt forgiveness would assist townships, informal settlements and hostels in developing, adding that democratic freedom would be meaningless if the areas stayed as they are.

Lesufi added that to develop townships, informal settlements and hostels, they need to be converted into new economic growth points.

According to New24, Eskom has already written off billions in overdue payments owed by Soweto residents. In 2020 the power utility forgave almost R8 billion in unpaid electricity bills.

Municipal debt is one of the more significant challenges to Eskom's financial woes. As of 32 August 2022, the power utility was owed over R51 billion.

South Africans react to Lesufi's calls for debt forgiveness

South Africans are torn. While some believe Lesufi's stance is progressive, others believe debt forgiveness is a bad idea.

Here are some comments:

@ChepapeD said:

"That's not a good idea, a portion must be paid still. Everyone must chip in"

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@Miges_S asked:

"What happens after scrapping our Soweto debt, are you up to something, sir?"

@ThokozaneTm commented:

"A progressive view, Premier"

@Lesmyplace added:

"It will make sense if we say the debt is getting scrapped with everyone starting to pay for their electricity and getting rid of illegal connections otherwise, it will be a futile exercise."

SIU Uncovers Massive Organised Crime Syndicate at Eskom, Says the Happenings Are “Very Scary”

In another story, Briefly News reported that an investigation into the situation at Eskom uncovered the shocking state of the happenings at the power utility. The Special Investigating Unit (SIU) told Parliament that Eskom’s management is cooperating with the investigation.

During the investigation, an organised crime syndicate was discovered at Eskom. SIU head Andy Mothibi said that officials developed sophisticated methods of hiding their involvement in companies that did business with the entity.

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Source: Briefly News