Municipal debt in the spotlight

A meeting to discuss the municipal debt crisis is happening today.

Eskom, the South African Local Government Association (SALGA), Department of Cooperative Governance (COGTA) and National Treasury will be in attendance to discuss the crisis around municipal payments.

The Department of Public Enterprises and Finance portfolio committees will also be in attendance. This meeting took place from 10:00.

Earlier this year, SALGA and Eskom agreed that Eskom would bill municipalities on a 30 day cycle and interest would be reduced from prime plus 5% to prime plus 2.5%. It was also agreed that payments would be allocated against the capital portion of the debt first.

The Democratic Alliance is pushing for the unrecoverable debt to be written off.

“We estimate that this is all debt that is older than three years. In addition, we will seek to have a moratorium placed on the charging of all interest for debt that is older than 90 days,” said Mr Kevin Mileham DA Shadow Minister of Cooperative Governance and Traditional Affairs.

According to Eskom, debt write-offs are currently not on the table.

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Zita Goldswain
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