Municipal officials on Monday 13 April confirmed that Makana is not in danger of being cut off by Eskom. The confirmation came following weekend reports that Eskom would cut electricity to 20 non-paying municipalities from 5 June.
Municipal officials on Monday 13 April confirmed that Makana is not in danger of being cut off by Eskom. The confirmation came following weekend reports that Eskom would cut electricity to 20 non-paying municipalities from 5 June.
Makana was one of the municipalities named, and concern spread as members of the public quickly shared the news.
At a special council meeting on 31 March, plans were announced to pay millions of rands owed to the power utility.
It involved securing part of the municipality's equitable share for this purpose.
In Grocott's Mail's 2 April edition, we reported that a deadline to submit a financial recovery plan to Treasury was crucial to this plan.
Makana Municipality's acting municipal manager Mandisi Planga confirmed at the time that all the resolutions required by the National Treasury to release the municipality's equitable share of R19 550 000 were delivered on time.
On Monday 13 April, Planga told Grocott's Mail: "As reported at the Council meeting, we will be making payment plans with Eskom.
The first payment was done on 7 April 2015.
"We have made our first payment as planned," Planga said.
"Eskom has acknowledged and confirmed that we are up to date with our payment plan.
"Citizens should not worry about the power cut-offs. We are above board."
In the 31 March meeting, it emerged that Council representatives had visited National Treasury offices to negotiate the release of Makana Municipality's withheld equitable share.
Makana's equitable share was being withheld because the municipality hadn't signed an agreement to pay Eskom an outstanding R66.76 million.
Makana last paid Eskom in January.
The Local Government Equitable Share is a distribution from national tax based on a formula that balances various demographic data.
Makana's withheld portion amounted to R19 550 000.
At an urgent meeting on Monday 30 March between Makana and Eskom it was agreed that R4m would be paid immediately, while the remaining R13 852 201.92 in respect of the January and February amounts would be paid as soon the equitable share is received by the municipality.
The municipality agreed to make a payment of R6 939 773.16 towards its March debt. Meanwhile, Planga said he had followed up on Premier Phumulo Masualle's promise during his State of the Province address earlier this year to financially assist Makana and other municipalities.
A payment of between R15m and R30m will be made to Makana to be spent only on paying the municipality's Eskom debt, Planga said at the meeting.
*The amount of R19 550 000 was changed from R19 550 00 in the original story.
