Emfuleni Municipality assets seized over R2.3bn Eskom debt

Eskom is currently repossessing property belonging to the Emfuleni Local Municipality in Gauteng due to its overdue non-payment of R2.3 billion. 

Eskom spokesperson Sikonathi Mantshantsha explained that the sheriff from the Gauteng High Court on behalf of Eskom will continue to remove the municipality’s property and sell it off until it receives R2.3 billion in outstanding debt.

According to former SABC correspondent, Netbo Mokobo, Eskom confiscated goods worth over R630 million belonging to the municipality. Mantshantsha, however, could not confirm this.

“These included dozens of cars among others,” he added. 

Here’s how Eskom sees it  

According to Mantshantsha, the sheriff of the Gauteng High Court is removing property belonging to the Emfuleni Municipality from three different sites in Vanderbijlpark. 

“This is to enforce a court judgement to collect unpaid electricity accounts to the tune of R615 million,” he said. 

“Eskom has issued the municipality with a summons to collect the balance of the owed R2.3 billion,” he added. 

Mantshantsha explained that Eskom and the sheriff of the court will continue to repossess their property and sell it off until the unpaid account has been settled. 

When asked what type of property is being taken from the municipality, he said he cannot provide answers and that only the sheriff would know. 

Emfuleni has a history of non-payment 

In 2018, the Emfuleni Local Municipality had some of it’s vehicles repossessed due to non-payment. Now, two years later, history seems to be repeating itself. 

The municipality had its basic vehicle fleet, including essential service vehicles, repossessed. The municipality reportedly defaulted on payments with service providers, a basic act that should be routine for municipalities.

The vehicles were repossessed by Bidwest and OUTA is now calling for the municipality to be dissolved.

According to the National Treasury regulations stipulate that service providers must be paid within 30 days of issuing an invoice. Emfuleni Municipality has also not honoured its financial obligations to Eskom, Rand Water and many other service providers.

“The White Paper on Local Government and the Local Government Systems Act stress the critical importance of community and civil society involvement in the governance of municipalities, yet all interventions in collapsed municipalities exclude civil society and community representatives,” said former ANC MP Dr Makhosi Khoza.

Emfuleni Municipality spokesperson Stanley Gaba was not available for comment at the time of publication.