The case between Eskom and the municipality of Renasterberg about the million-dollar debt to the energy company will be heard in the High Court of the Northern Cape on May 27.
Eskom has attached municipal bank accounts to repay the debt.
The freezing of the account put the municipality in a difficult position, which led to non-payment of wages and poor provision of services.
The mayor of Rennesberg, Andrew Samson, says: “This issue has affected the municipality for almost seven months. It also put a lot of strain on us, especially for our staff, because we couldn’t pay them for the last couple of months.
With the help of the provincial government, we were able to pay at least two months’ wages, which was the salary bill for November and December, and it has been difficult for Rennesberg since then to provide proper services in accordance with our constitutional mandate. “
The municipality says it has presented Eskom with a debt repayment plan of 106 million rupees.
Samson says they are waiting for Eskom’s response to his offer.
“We adopted a board resolution where we agreed with Eskom in terms of an affordable payment plan. The first thing we presented to them was to give them quarterly 20% of our share, with which they had problems. The Council then decided, considering all the problems we should give them at least 2.5 million rupees per quarter as part of a fair share, and pass on all our electricity sales from Eskom’s end consumers. ”