Eskom Gets an Order to Attach R1.3 Billion Worth of Emfuleni Municipality's Assets for Years of Debt

• Eskom has been granted an order to attach Emfuleni Local Municipality's assets for lack of payments
• The state-owned power utility stated that the municipality owes over R5 billion in total, but the order was for R1.8 billion
• South Africans are wondering how the order would work and if Eskom will be removing tables and chairs at the municipality's offices

JOHANNESBURG - The Pretoria High Court has granted Eskom an order to attach the assets of Emfuleni Local Municipality for being in arrears. Eskom stated that the municipality owes the power utility R1.3 billion.

In a statement issued on Monday, 7 November, Eskom said it had already begun the process of recovering some of the municipality's debt and plans to attach the municipality's bank accounts and movable assets.

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Eskom explained that Emufeleni Local Municipality is in debt of R5.3 billion despite having a revenue collection rate of 90%, reports News24. Eskom added that Emfuleni had been served with a summons for R3.4 billion for non-payment of its bulk electricity supply, and the matter will be heard in March 2023.

According to SowetanLIVE, the business community in Emfuleni stated that Eskom being granted the order to attach the municipality's assets will devastate businesses.

Klippies Kritzinger, CEO of the Golden Triangle Chamber of Commerce, told the publication that the order was not surprising as Emfuleni has failed to meet its commitments to Eskom and Rand Water.

Kritzinger stated with the court order, more businesses might leave Emfuleni because the municipality has not been delivering services.

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South Africans share their thoughts:

@MaanoMadima said:

"How will our people bake cheesecake without electricity?"

@Gr8_White00 said:

What are they going to take. Tables chairs. Now the employees cant work at all. Take the bakkies and cars. Now, no water electricity repairs."

@Mncwabe4Themba said:

"So, what will happen after instructing the sheriff to sell those movable assets? Would you move to sell the immovables as well?"

@pops_sa said:

"How and why would they let it even accumulate to that amount in the first place? If it got to 100k, cut them off until payment is made, but R5.3 billion is outrageous!"

@Muzila8 said:

"Comrades stole billions now the community must face the consequences."

Gauteng Premier Panyaza Lesufi says scrapping Soweto's nearly R5bn Eskom debt will drive economic development

Briefly News previously reported that the Premier of Gauteng, Panyaza Lesufi, has called for the government to scrap nearly R5 billion owed to Eskom by the township of Soweto.

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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.

Source: Briefly News