Western Cape municipalities score major debt relief from Eskom

The Western Cape Government has announced a significant win for several of its municipalities, securing a debt write-off for the money they owed Eskom, Cape {town} Etc reports.

This move, which clears a third of the total debt owed by the region, is expected to free up resources for essential services and community development.

Four local municipalities have qualified for a total of R93.1 million in debt relief, including:

• Matzikama (R37.7 million)
• Cederberg (R15 million)
• Kannaland (R14.8 million)
• Beaufort West (R25.6 million)

Western Cape Minister of Local Government, Environmental Affairs and Development Planning, Anton Bredell, praised these municipalities for their financial discipline, which has allowed them to benefit from this substantial reduction in debt.

Minister Bredell highlighted that these municipalities, especially the smaller ones, will be able to use the freed-up funds for critical community needs rather than continuing to pay off past Eskom debt. He encouraged the municipalities to remain focused on meeting the criteria to have the remainder of their debt written off in the next two years.

The provincial government has stressed that the write-off will not only relieve financial pressure but will also eliminate interest payments on the original debt. The municipalities will continue to work on meeting their Eskom commitments, with the possibility of further debt relief as they improve their financial standing.

The Western Cape Minister of Finance, Deidre Baartman, emphasised that adherence to best practices in revenue collection is key to ensuring the long-term success of this program. Both provincial and national treasury teams, along with Eskom, have supported the municipalities throughout this process, ensuring that the debt relief is sustainable and effective for improving financial health and service delivery.

With the collaboration of local and provincial authorities, this debt relief is seen as a crucial step toward restoring the financial stability of municipalities and enhancing the services provided to communities across the Western Cape.

Also read:

‘You made me a mother’: Lynn Forbes remembers AKA on his 37th birthday

Picture: Teddy Jansen / Unsplash

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}