People punished for councils' failings

13 April 2015 - 02:21 By Olebogeng Molatlhwa

A cold, dark winter awaits 3.8million South Africans if Eskom acts on its threat to cut off electricity to 20 municipalities that owe it billions of rands. On Friday Eskom announced that if the 20 municipalities fail to settle their R3.8-billion debt they will be cut off on June 5.Eskom's threat follows a decision by the Treasury to withhold funding from 60 municipalities.The SA Local Government Association believes the denial of funding is intended to speed up the dissolution of struggling municipalities, in line with Co-operative Governance and Traditional Affairs Minister Pravin Gordhan's call for a review of the status of 73 financially unviable or dysfunctional municipalities ahead of the 2016 local government polls.Eighteen of the municipalities from which the Treasury has withheld funding are among those Eskom has targeted. The Local Government Association has warned that if Eskom carried out its threat it would devastate the economy and halt essential services. Municipalities are owed R100-billion by government departments but have not threatened the government."This interruption of the electricity supply has major impacts on the economy, essential services and communities, including those who have paid their bills. The ripple effects should not be ignored: unemployment, poverty and the inability of communities to pay for services," said Simphiwe Dzengwa, acting chief executive of the association."We need to find a permanent solution to the bulk electricity and other arrears."..

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