AfriForum demands answers regarding Mohokare Municipality’s R135 million Eskom debt and proposed debt agreement
AfriForum gave the Mohokare Local Municipality seven working days to provide answers regarding the reasons for the municipality’s massive, accumulated debt to Eskom, which now threatens to plunge Zastron, Rouxville, and Smithfield into darkness. In a letter sent to Mopedi Mohale, the Acting Mayor of the Mohokare Municipality, on Friday the organisation demanded clarity on how the debt – amounting to R135 million – was accrued, as well as the status and terms of the proposed agreement for settling this debt.
According to media reports, Eskom had already notified the municipality in writing on 4 July that the power supply would be suspended if the outstanding account was not settled by Friday 17 July. Since then, however, Eskom appears to have changed its stance, threatening to cut the power unless a repayment agreement is reached between the utility and the municipality. It has further been reported that the municipality is currently negotiating with Eskom regarding the debt repayment, yet councillors and residents are receiving little to no feedback on the process.
In addition to information regarding the accumulation of debt and the repayment agreement reportedly being negotiated, AfriForum is demanding specific details about the outstanding debt amount, interest charged, and any other additional costs added to the total. The organisation also requests a copy of Eskom’s original letter dated 4 July; confirmation of whether the suspension of electricity supply is still being contemplated; and improved communication with residents regarding the situation and the proposed recovery plan to prevent a recurrence of the debt problem.
According to Christo Groenewald, AfriForum’s District Coordinator for Bloemfontein, it is unacceptable that residents and businesses who faithfully pay their Eskom accounts might have to bear the consequences of the municipality’s financial mismanagement. “Residents have the right to know how the debt accumulated, what the current negotiations entail, and whether the electricity supply is at risk,” he explains.
The Mohokare Municipality’s Eskom debt fiasco follows closely on the heels of the National Treasury’s announcement earlier this month that the equitable share grant for this municipality – as well as for 68 other struggling municipalities – had been temporarily withheld due to persistent financial mismanagement.
“The municipality cannot continue to make important financial decisions behind closed doors while residents bear the risk of power outages. Transparency and decisive action are now essential,” says Groenewald.
AfriForum warns that it is prepared to escalate the matter to Eskom, the Provincial Treasury, and the Free State Department of Cooperative Governance and Traditional Affairs should the municipality fail to respond satisfactorily to its inquiries within the stipulated timeframe.
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