SCA ruling opens door for Eskom to recover debt from defunct municipalities

Eskom has won a court case ordering the Letsemeng Local Municipality in the Free State to pay back the electricity debt it owes within the next 30 days.

It’s understood the municipality owes R108.5 million.

The ruling comes in the wake of reports in January 2020 that over 200 municipalities in South Africa owed Eskom R44 billion.

In a press release on Monday, the utility said, “Eskom’s attempts to recover the debt have often been frustrated by conflicting high court judgments some of which have been used by delinquent municipalities as justification for their failure to meet their obligations to Eskom.”

In a major ruling last week, the Supreme Court of Appeal (SCA) found that Eskom was legally entitled to receive payment from municipalities for the electricity it supplied them.

Eskom said the municipality had reneged on its undertakings to pay back Eskom “despite the municipality’s express undertakings to pay its debt to Eskom, this included the monthly payments for the current account and the repayment of the arrear debt.”

The ailing power utility, that’s been battling to keep lights on, welcomed the court ruling, adding it would continue with its efforts to recover the debt owed by delinquent municipalities.

-EWN

In other news – Enhle Mbali’s new man revealed, a Gauteng big daddy – Photo

DJ Black Coffee’s estranged wife and actress – Enhle Mbali has reportedly moved on with Gauteng businessman Peter Sebiloane. Mlotshwa and Black Coffee separated in 2019 after four years of marriage.

Sources close to actress and DJ Black Coffee’s estranged wife Enhle Mbali have revealed that she’s dating businessman Peter Sebiloane who’s also single after divorcing his wife in 2015. Learn More