Treasury must first pay Eskom, then city councils

The Freedom Front Plus will be asking the Minister of Finance. Mr. Nhlanhla Nene, to have Treasury first pay Eskom's account of those municipalities who are not paying, before funds are paid over to the relevant municipalities.

Treasury pays billions of rand to municipalities from the central budget annually. Eskom has through its spokesperson, Khulu Phasiwe, declared that load-shedding will be implemented in twenty municipalities from the 5^th June during peak hours because the municipalities are not paying their Eskom accounts. Load-shedding will be implemented during the week from 06:00 - 10:00 and 17:00 - 21:00 and over weekends from 07:00 -10:00 and 17:00 - 20:00.

"It would be unreasonable toward consumers who do pay their electricity accounts but will be experiencing drastic load-shedding due to the poor administration of municipalities which do not pay Eskom. If Treasury first pay the Eskom account and pay the balance thereafter to the municipalities, it would help to resolve Eskom's financial problems and municipalities' debt of R4,6 billion owed to Eskom and it would be reasonable toward consumers," Dr. Pieter Groenewald, the parliamentary spokesperson on Local Government for the Freedom Front Plus says.

"Strict action should also be taken against municipalities who incorrectly use their service fees for water and electricity provision for other payments. Consumers pay for water and electricity, but some municipalities use those funds to pay salaries. It is unacceptable and must be stopped," Groenewald said.

Note:

The twenty municipalities which will be affected are as follows:

1. Maluti-a-Phofung (Phuthaditjhaba)

2. Matjhabeng (Welkom)

3. Emalahleni (Witbank)

4. Ngwathe (Parys)

5. Thaba Chweu (Lydenburg and Graskop)

6. Lekwa (Standerton)

7. Govan Mbeki (Secunda, Evander and Bethal)

8. Matlosana (Klerksdorp, Orkney and Stilfontein)

9. Naledi (Vryburg)

10. Thabazimbi (Thabazimbi)

11. Msukaligwa (Ermelo)

12. Lichtenburg (Lichtenburg)

13. Nala (Bothaville and Wesselsbron)

14. Makana (Grahams Town)

15. Madibeng (Brits)

16. Randfontein (Randfontein)

17. Dihlabeng (Bethlehem and Clarens)

18. Nketoana (Reitz)

19. Nama Khoi (Springbok)

20. Westonaria (Westonaria)

Statement issued by Dr. Pieter Groenewald, FF Plus parliamentary spokesperson: Local Government, April 13 2015