Billions owed by municipalities will take decades to pay off

Ten of the country's municipalities who owe Eskom close to R14-billion appeared Parliament’s Standing Committee on Public Accounts on Wednesday to explain their non-payment.

Matjhabeng Municipality in the Free State owes the parastatal a massive R1.7 billion.

Eyewitness News reporter Lindsay Dentlinger says a reluctance by taxpayers to pay their bills due to poor service delivery is one of reasons for the massive debt.

Many of them share the same problems, lots of them related to the economic state the country is in and people unable to afford to pay their bills or a reluctance by people to pay their bills because they feel they do not get the services they deserve.

Lindsay Dentlinger, EWN reporter

Where many of them say the problem comes is firstly that they having to pay historical debt, also the interest and other charges that Eskom is levying on these amounts. One of the municipalities saying that they are meeting their commitment to pay Eskom month by month but with all the interest, they just keep falling further behind.

Lindsay Dentlinger, EWN reporter

One municipality saying that in their agreement with Eskom it would take them 30 years to pay off their debt.

Lindsay Dentlinger, EWN reporter

Click on the link below to listen to the full report...


This article first appeared on 702 : Billions owed by municipalities will take decades to pay off


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