Eskom is strangling the last bit of breath out of Emalahleni Local Municipality with their high interest rate.
The electricity giant is imposing a 15% interest on the outstanding amount which the municipality owes them. This interest rate is higher than that of commercial banks.
“The interest charged in the past 15 months amounts to R126 876 947, which is 30% of the total bill of Eskom,” said Mr Kingdom Mabuza, municipal spokesperson.
In July the municipality paid R10 212 576 on interest, in August R11 340 028, September R12 444 734 and October R14 999 362. If you add this up the municipality paid Eskom R48 996 700 on interest in only four months.
“There is no way we will be able to settle our account with Eskom while they implement interest rates like this. The way Eskom is adding interest on interest is ridiculous,” Mabuza said.
The Executive Mayor of Emalahleni, Cllr Lindiwe Ntshalintshali encourages businesses to take hands with the local municipality. She hosted a breakfast with stakeholders in the business sector on Thursday, November 30.
The municipality however is hoping to catch up on their arrears account by mid 2018.
Residents often ask whether the municipality actually pays Eskom. In July the municipality paid R115 108 709, in August they coughed up R58 073 028, in September they only managed to pay R16 797 746, in October R41 544 159 and in November R21 000 000.
Read the FULL STORY in the WITBANK NEWS out today