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The latest barrage of cargo shedding, which reached stage 2 on Thursday night, coincided with the reopening of most of the economy under the level 2 lockdown, further stifling the ability of struggling industries to get on board. March. Image: iStock / Gallo Images
Eskom has secured farmland valued at approximately R2.5 billion as collateral for Matjhabeng municipality’s debt, it said in a statement Tuesday afternoon.
“In its ongoing efforts to recover more than R3.4 billion in unpaid debt from the Matjhabeng municipality, the municipality agreed to hand over 139 farms owned by the municipality to Eskom as collateral for the debt,” Eskom said.
The property titles of the farms will be guaranteed in favor of the electric power until the debt dispute between Eskom and the municipality is finalized, he added.
Meanwhile, Eskom agreed to lift the embargo on the municipality’s bank account and the account was returned to the municipality. However, R2.7 million in the account will remain attached and in the care of the Court Sheriff.
The municipality has “consistently defaulted” on its payment obligations and agreements despite numerous legal proceedings over the past six years, Eskom said.
The municipal debt has been a big problem for the electric power company. At the beginning of this year. The municipality of Emfuleni went to court in an attempt to block further seizures of assets by Eskom after the state-owned company seized furniture and vehicles. At that time, Emfuleni owed Eskom more than R2 billion.
The judicial offer was unsuccessful.
In August, Vice President David Mabuza named municipal debt as one of the “main” contributors to service delivery challenges.
* Compiled by Marelise van der Merwe
