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Court delivers 135 farms owned by the FS municipality to Eskom over debt dispute
The Free State High Court issued the order that is part of Eskom’s efforts to recover some of the money that the local Matjhabeng municipality has not continuously paid despite receiving bulk electricity for its customers.
Eskom’s Megawatt Park offices in Johannesburg on March 12, 2015. Image: EWN
JOHANNESBURG – Eskom is taking over 135 farms owned by a Free State municipality as collateral for the outstanding debt with the utility company.
The Free State High Court issued the order that is part of Eskom’s efforts to recover some of the money that the local Matjhabeng municipality has not continuously paid despite receiving bulk electricity for its customers.
Farmland is valued at R2.5 billion.
Eskom has been in court to get the money back since 2014 when the municipality’s debt was still R372 million. In the past six years, it has skyrocketed to R3.4 billion.
Spokesperson Sikonathi Mantshantsha: “The land titles of these farms will be backed in favor of Eskom until the debt dispute between Eskom and the municipality is finalized. This agreement has been made by order of the High Court of the Free State division.” .
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