Deadlock on R2,3bn ELM debt repayment to Eskom
ELM and Eskom seem deadlocked on payment of the municipality’s R2,3 billion - and growing - electricity debt which recently resulted in the power provider having the local authority’s assets seized by the Sheriff.
Two separate proposals – one an 8-year payment plan proposed by ELM and the other a 5-year repayment counter-proposal by Eskom – are now with the Gauteng Provincial Government for discussion according to Eskom.
The Golden Triangle Chamber of Commerce (GTCoC) has appealed to Eskom to be sensitive and responsive to the special circumstances faced by a new ELM administration and the Vaal region in addition to the present Corona virus crisis.
GTCoC CEO Klippies Kritzinger said it was vital an agreement be reached which ELM could afford and could adhere to. But Kritzinger added that whatever deal was made should be “absolutely”adhered to by ELM.
“We appeal to Eskom to understand that ELM is only beginning to emerge from an extended period of municipal capture, gross mismanagement and widespread corruption which have destroyed revenue streams and service delivery,”said Kritzinger.
Eskom national spokesperson Sikonathi Mantshantsha this week confirmed to Vaalweekblad that no deal had yet been reached following ELM reneging twice within a few months (late last year and earlier this year) on its agreed payment obligations.
The existing deadline for a deal to be put in place is April 14, according to Eskom.
The apparent deadlock is now before Gauteng Province GOGTA (Co-operative Governance and Traditional Affairs) MEC Lebogang Maile, who earlier intervened personally to seek a high-level political solution with Eskom CEO André de Ruyter.
Maile set up the meeting between de Ruyter, himself and Gauteng Mayors and Municipal Managers after a fact-finding mission earlier to ELM to determine why the payment defaults took place.
Maile said after talks with the ELM Mayoral Management Committee it was alleged they were deceived by senior officials that payments were taking place, but also added that a more “sustainable and affordable” payment agreement between the two parties was needed.
Newly-appointed ELM Municipal Manager Lucky Leseane then developed payment options for consideration by Eskom, after being confronted several weeks ago with the Eskom non-payment crisis on virtually his first day in office.
Business and political role players at ELM have placed blame for non-payment squarely at the door of former acting Municipal Manager Ditha Oupa Nkoane and his appointee, CFO Andile Dyakala. Both officials were originally political appointments by Gauteng GOGTA sent to manage the financial recovery of ELM.
Eskom agreed to return seized ELM assets after an immediate R50million payment by the municipality. No comment was received from either COGTA or ELM by time of publication.
