Eskom has attached Emfuleni Municipality’s bank accounts to recover R8 billion in arrears after the municipality allegedly failed to meet National Treasury’s debt relief programme criteria.

The Municipal Finance Management Act debt relief programme allows for municipalities’ Eskom debt to be written off, provided they meet 14 specific conditions such as maintaining high collection rates, prioritising debt payments, installing smart prepaid meters and ensuring budget alignment with revenue.

As of July 2, Emfuleni was removed from the programme due to multiple breaches, Eskom said in a statement. “Consequently, the Sheriff of the Court has successfully attached Emfuleni’s four bank accounts to ensure the money collected for electricity is paid directly to Eskom.”

Makhosonke Sangweni, a spokesperson for Emfuleni Municipality, told Energize the municipality has not been officially informed by National Treasury of its removal from the debt relief programme. “Unless Eskom has inside information that we are not aware of, this claim is untrue. Eskom is not acting in good faith. They are not negotiating fairly.”

As of August 31, Emfuleni reportedly owes over R8 billion for bulk electricity, which is approximately 10% of the total R82 billion owed by municipalities, placing the municipality among the top three with Eskom debt, the national utility said.

“Eskom cannot financially sustain the electricity debt of the municipality without severely impacting its own operations and the citizens of the country. The municipality’s failure to pay for bulk electricity compromises Eskom’s financial stability and its ability to provide affordable electricity.”

According to Eskom, prior to this development, all legal and mediation avenues were exhausted to secure payment for services rendered since 2018.