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AfriForum is of the opinion that the payoff-agreement between Eskom and the Thabazimbi Local Municipality will lead to the downfall of the Municipality. The civil rights organisation submitted their comments during a public participation process after Eskom recently announced that they might cut the Municipality’s electricity supply due to non-payment.

“Although the details of the agreement are unclear, AfriForum received confirmation that the Municipality paid Eskom R9 million in July 2015. If this will be the case for the next 12 months, the Municipality will pay R108 million in total, which will surely sink the Municipality. However, the Municipality’s budget regarding income through electricity sales for the 2015/2016 financial year is estimated at only R81 million. How will they generate the rest of the money?” said Morné Mostert, Provincial Coordinator for AfriForum in Limpopo.

Mostert further says that AfriForum’s comments are not based solely on the mismanagement of funds generated through electricity sales, but also on the Municipality’s general financial management.

“The impact of such a contract on the strategic planning of a municipality is enormous. It’s simply not feasible and will only lead to more debt.”

Eskom’s notification stated that all grievances must be submitted before 3 August 2015 where after a final decision will be made on 10 August. Should they move forward and cut the electricity, it will take effect on 18 August.

AfriForum needs a further mandate to oppose Eskom’s final decision, should they decide to cut the electricity. SMS “POWER” to 45340 (R1).

Issued by Eskom