Matlosana’s Eskom and bulk water debt just short of R2 billion

Issued by Johannes Le Grange – DA Caucus Leader: City of Matlosana
11 Jan 2022 in Press Statements
Note to Editors: Please find attached soundbites in English and Afrikaans by Cllr Johannes Le Grange.

The City of Matlosana’s bulk water and electricity debt is fast approaching the R2 billion mark. Eskom debt now stands at R1 billion while the bulk water debt to Midvaal crossed R850 million as revealed in the first quarterly report of the 2021/22 financial year.

The report further reveals that the bulk debt increased by R610 million over the last year.

The escalating debt threatens the sustained supply of water and electricity to residents. Both Eskom and Midvaal have warned that they will limit and/or suspend electricity and water supply should the City of Matlosana fail to honour payment agreements.

The Democratic Alliance (DA) in Matlosana has on numerus occasions expressed dissatisfaction with the City’s financial recovery plans for failure to address the poor financial planning and mismanagement.

Meanwhile, the North West Provincial Government owes Matlosana more than R113 million in unpaid utility accounts for the Departments of Transport, Education, Health and Social Development. Immediate payment will assist in reducing the bulk serviced debt.

Out of the 120 000 municipal accounts only about 40% regularly service their utilities, further exacerbating the debt crisis. The City of Matlosana should proactively identify households for subsidised assistance and even indigency, which will not only improve the lives of residents, but also assist with additional funding from Treasury.

The DA will participate in the scheduled strategic planning session later this month to map out a comprehensive recovery plan that will ensure that the City of Matlosana commits to reducing its ballooning debt, improve revenue collection, and deliver quality basic services.