Western Cape municipalities have received a combined R93,1 million in debt relief from Eskom under the national debt write-off programme.

The four municipalities benefiting from the programme are Matzikama (R37,7 million), Cederberg (R15 million), Kannaland (R14,8 million) and Beaufort West (R25,6 million). These amounts represent one third of their total Eskom debts. The remaining two thirds may be written off over the next two years, provided the municipalities meet the conditions of the relief programme, including financial discipline and revenue collection improvements.

Western Cape Minister of Local Government, Environmental Affairs and Development Planning Anton Bredell says the relief will help municipalities focus on essential services rather than servicing historic debt. “These four municipalities are showing what the benefits can be when you practice financial discipline. I want to congratulate them but also urge them to focus on getting the remainder of their debt written off as well.”

The Eskom debt relief programme has a long list of conditions that have to be monitored monthly by Provincial Treasury. “We have seen, across the country, municipalities struggling to meet the conditions of the programme. These include implementing best practices for revenue collection to ensure they can pay what they owe to suppliers, including Eskom,” says Deidré Baartman, Western Cape Minister of Finance.

Provincial Treasury has provided oversight and support to assist local governments in meeting Eskom’s conditions, Baartman says. “The credit for this achievement is shared by the municipalities, Provincial Treasury and National Treasury who have worked closely with Eskom to ensure that these municipalities reduce their debt.”