Ngwathe’s Eskom debt nearly at the R3 billion-mark; dark days may lie ahead
AfriForum demands answers from the Ngwathe Local Municipality on how the Municipality plans to pay its R2,9 billion debt to Eskom and thus prevent residents and businesses from being plunged into darkness. This demand is contained in a letter that AfriForum sent to the Municipality today and follows in response to a public notice that Eskom published on Friday. According to the notice, Eskom plans to cut or suspend the electricity supply of Ngwathe and more than a dozen other municipalities in May due to arrears in debt to the power supplier.
According to Alta Pretorius, AfriForum’s District Coordinator for the Mooi River, the Ngwathe Municipality’s financial mismanagement now poses a direct threat to residents and businesses who pay their electricity bills faithfully. This is also further proof of this Municipality’s ongoing failure to meet its constitutional and statutory obligations, she believes.
The latest development comes amid AfriForum’s protracted legal battle with the Municipality over poor service delivery. The High Court had already ruled in AfriForum’s favour in June 2025 and determined that the Municipal Council must be dissolved and that the provincial government must intervene with the municipality. The High Court, meanwhile, ruled last month that this court order must now be implemented immediately – despite the Municipality’s application for leave to appeal to the Constitutional Court. The judge also emphasised that there is an obligation under the Constitution to intervene with this municipality.
“Ngwathe’s enormous debt to Eskom is indicative of its systemic financial mismanagement,” explains Pretorius. “Urgent action is now needed to avert the implementation of Eskom’s punitive measures and mitigate the impact of power outages on healthcare, sanitation services, businesses, the economy and community safety. The Constitution binds municipalities to ensure that basic services are delivered, and the Municipal Finance Management Act requires proper financial management – Ngwathe therefore has an undeniable duty to act in the interests of residents and set things right.”
In its letter to the municipality, AfriForum urges:
- a full explanation of how the debt to Eskom accumulated;
- a credible and feasible repayment plan;
- the assurance that residents who faithfully pay their municipal bills will be protected; and
- an indication of what steps are being taken to prevent further debt.
Pretorius is also taking aim at the Municipality’s mismanagement of taxpayers’ money. Although the court has repeatedly ruled that service delivery in Ngwathe is inadequate and requires intervention, the Municipality continues to appeal court rulings. “Ngwathe chooses control over restoring service delivery and financial discipline. In the meantime, they continue to waste money on litigation and appeals rather than meeting their financial obligations to Eskom. This approach now threatens to punish residents, because despite residents’ faithful payment, they may soon be left without power due to the Municipality’s poor financial management,” explains Pretorius.
Recent events hosted by the Municipality, such as a big birthday party for Mayor Victoria de Beer and this past weekend’s fitness event, also raise questions about the Municipality’s financial management.
“Where does the money for parties and fitness events come from and how can events like these be hosted while the payment of critical basic services is neglected? At a time when the Municipality is on the brink of a power crisis, every cent should be used to protect basic services,” concludes Pretorius.
AfriForum made it clear in its letter to the Municipality that if urgent and effective measures are not implemented to avert the crisis, further legal action will be considered to protect the community’s right to basic services.
