Chamber’s CEO reveals the truth about Eskom’s seizure of Emfuleni assets
"GTCoC feels compelled to dispel in no uncertain terms and in detail the fake news distributed by ELM" - Klippies Kritzinger
Mr Klippies Kritzinger, CEO of the Golden Triangle Chamber of Commerce (GTCoC), made this press statement earlier today (11 March 2020) regarding yesterday’s seizure of Emfuleni Local Municipality’s assets as a result of non-payment to Eskom. According to Kritzinger, ELM sent out “fake news” regarding the situation, which he would like to rectify in this statement.
MEDIA STATEMENT GOLDEN TRIANGLE CHAMBER OF COMMERCE (GTCoC)
By Klippies Kritzinger – CEO GTCoC
As the voice of business in the Vaal, the GTCoC wishes to reject utterly the fake news and blatant fictions and distortions distributed on Eskom’s seizure of municipal property due to non-payment of R2,3 billion in debts owed the utility provider. This blatant attempt to mislead the public and stakeholders cannot go unchallenged. As a matter of transparency and public trust the GTCoC feels compelled to dispel in no uncertain terms and in detail the fake news distributed by ELM in a clear attempt to mislead the public, media and stakeholders. The GTCoC also demands the immediate suspension or resignation of ELM CFO Andile Dyakala who was also directly responsible for last year‟s non-payment of Eskom which resulted in the threat of a cut-off of power supply to the municipality and thus to most of the Vaal Region. As CFO, Dyakala is directly responsible for financial management and strategic financial policy. In the public interest the GTCoC thus responds to ELM media statements on the matter in detail and as follows:
EMFULENI FAKE NEWS NUMBER 1
“In November 2019, the Emfuleni Local Municipality submitted a debt re-payment plan, which Eskom has to date not responded to.” Fact: When Emfuleni makes an offer (submit a repayment plan) and the other part (Eskom) does not accept it (by not responding) THERE IS SIMPLY NO DEAL! Fact: There was in fact an agreed repayment plan that was initially honoured by Emfuleni, but then disregarded by the CFO and the former MM.
EMFULENI FAKE NEWS NUMBER 2
“For more than 33 years Large Power Users have been paying lower tariffs for electricity, owing to the so-called 1987 agreement entered into by the then Vanderbijlpark Town Council and the Large Power Users.” (“LPUs”)
Fact: Many LPUs were not even in existence in 1987(33 years ago).
Fact: Some LPUs pay an agreed rate due to the fact that they installed on their cost electrical and other infrastructure.
Fact: Most municipalities have incentives available to attract business and industry in an effort to create jobs.
Fact: A high electricity cost is a major factor causing industries to close down (Saldana steel is a case in point) and once closed, it is highly unlikely to re-open ever again. The result – one of the highest unemployment rates in the world.
EMFULENI FAKE NEWS NUMBER 3
“Some of the Large Power Users are paying directly to Eskom at reduced Eskom tariff cost, with far lower tariffs when compared to what the municipality was charging them before the proposal of the new tariffs.”
Fact: Some LPUs pay directly to Eskom in terms of a court order and do not necessarily pay Eskom tariffs only.
Fact: Emfuleni is in breach of its NERSA license conditions, one of which is to maintain the electrical infrastructure.
Fact: Most, if not all LPUs want to pay Eskom directly and want Eskom to take over the electricity network, in order to (hopefully) SAVE what is left of the infrastructure.
EMFULENI FAKE NEWS NUMBER 4
“In 2018/19 the municipality proposed tariff increases to NERSA, which was (sic) approved. In light of the recent development, the municipality is (sic) will be engaging NERSA to find lasting solution (sic) towards the proposed tariff increases.”
Fact: The court has set aside the proposed tariff – it no longer exists.
Fact: The process to apply for and approve the tariffs (before it was set aside) was not fair from an administrative law point of view, unconstitutional and therefore illegal.
Fact: Not even NERSA supports the attempt by Emfuleni to reverse the court order.
EMFULENI FAKE NEWS NUMBER 5
“This led to massive estimated financial losses amounting to R261 159 911, negatively affecting the municipality financial position.”
Fact: Emfuleni continues to charge the increased tariff despite the fact that a court case won by the GTCoC & LPU‟s has set it aside. It has no respect for the law.
Fact: The alleged loss is insignificant compared to the hundreds of millions lost due to corruption, theft, irregular and wasted expenditure, with no visible effort to recover anything.
Fact: Responsible parties (including past and present Emfuleni officials and employees) shall be held accountable (Dudu Myeni-style and in criminal court).
Fact: Numerous jobs were saved, due to the fact that industries are able to deduct the increase.
EMFULENI FAKE NEWS NUMBER 6
“The municipality hereby informs the residents that this seizure of its assets will impact negatively on service delivery efforts, which will lead to backlogs in the delivery of basic services.”
Fact: Is this a joke? What basic service delivery?
EMFULENI FAKE NEWS NUMBER 7
“At this stage, the municipality does not anticipate any interruption of electricity supply, except in cases of scheduled load-shedding.”
Fact: Eskom does not refrain from interrupting the electricity supply DESPITE Emfuleni non-payment, but thanks to a court order applied for by the LPUs and the fact that 90% to 95% of issued electricity accounts are being paid.
Fact: Despite the fact that the LPUs and Emfuleni are on „the same side‟ to keep the lights on, Emfuleni acted in an irresponsible manner in the conducting of the court case and has LOST each and every appeal it lodged – at taxpayer‟s expense.
