Payments To Eskom: Did You Know Defaulting Municipalities Wasted Over R4 Billion? 


It has been exposed that the municipalities which have defaulted in payments to Eskom, wasted over R4 billion on unauthorized, irregular, fruitless and wasteful expenditure.

This revelation was culled from the Auditor General’s (AG) MFMA reports for the 2014-15 financial year after the Democratic Alliance (DA) party carried out a research on the AG report.

The findings of the research left the opposition party wailing about ANC’s poor management of finances.

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It was discovered that some of the municipalities defaulting in payments to Eskom wasted huge amount of rand on unauthorized, irregular, fruitless and wasteful expenditure.

The highlights below are some of the worst cases the DA uncovered.

  1. Madibeng (Northwest): R 1.5 billion
  2. Naledi (Northwest): R 354 million
  3. Emalahleni (Mpumalanga): R 329 million
  4. Mkhondo (Mpumalanga): R 280 million
  5. Renosterberg (Northern Cape): R 136 million

From the foregoing, Maimane’s party asserted that the “astronomical figure demonstrates just how poorly the ANC has run the finances of these municipalities, with little care for the money that should be spent on delivering services to the people, and growing the economy to create jobs.”

With that, the party upheld that the inability to make payments to Eskom is a “crisis long in the making.”

“Despite every indication in audit reports that these municipalities were sinking, neither the ANC, nor the Provincial Departments of Cooperative Government and Traditional Affairs (COGTA), nor the National Minister of COGTA, Des van Rooyen, did anything about it.

“In fact, Minister van Rooyen, as revealed in a reply to a DA parliamentary question in February last year, was not considering any intervention.

“The approach, it seems was just to sit on his hands and do nothing, even in the face of provincial government inaction,” DA stated.

Meanwhile, the opposition party has asked for a joint meeting between the Portfolio Committee on COGTA and the Portfolio Committee on Public Enterprises.

Also, they wrote to the AG demanding a systematic investigation into the finances of these municipalities. And, will be writing to the Standing Committee on Public Accounts to probe the disastrous financial mismanagement which preempted the electricity crisis.

The party further disclosed that it will demand accountability from all those “who sat idly by while the people’s money was being wasted”

“This must include summoning the increasingly absent Minister and the relevant provincial MECs so that Parliament can remind him that he has an important job to do.

“We will not sit back and allow vital services to be interrupted to over 3,2 million South Africans across the country. It is high time the ANC stopped sleeping behind the wheel, and took responsibility,” DA charged.

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Past Thursday, the Free State Provincial Government and Eskom held discussions over payment plans to resolve outstanding debt on Eskom accounts.

The discuss was led by Matshela Koko – Eskom’s Interim Group Chief Executive – and Kopung Ralikontsane – the Director General of the Free State office of the Premier -.

Speaking after the talks, Koko said: “we agreed to suspend electricity supply interruptions to the seven defaulting municipalities in the Free State following their payments in line with the PAJA (Promotion of Administrative Justice Act) process.

“Their January current account will be paid by mid-February 2017,” added the Eskom Interim Group Chief Executive.

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