MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / Ekurhuleni Financial Crisis Runs Much Deeper

Ekurhuleni Financial Crisis Runs Much Deeper

Although the Ekurhuleni Metro is compelled by a court order to settle its debt with Eskom, the Metro’s financial crisis runs far deeper than the ANC-led administration is willing to admit. According to a joint statement by Ekurhuleni and Eskom on 13 March, the Metro owes Eskom approximately R3,4 billion, of which R1,7 billion was […]

The post Court order compels Ekurhuleni to settle Eskom debt, but financial crisis runs much deeper appeared first on Freedom Front Plus.

Although the Ekurhuleni Metro is compelled by a court order to settle its debt with Eskom, the Metro’s financial crisis runs far deeper than the ANC-led administration is willing to admit.

According to a joint statement by Ekurhuleni and Eskom on 13 March, the Metro owes Eskom approximately R3,4 billion, of which R1,7 billion was settled in March.

The remainder of the amount will be paid off over a period of 18 months.

This agreement follows Eskom’s threat on 5 March to reduce or suspend bulk electricity supply to Ekurhuleni if the Metro failed to settle its debt.

The root of the problem is that residents faithfully pay their electricity bills, but the money is not passed on to Eskom. It underscores the need for more stringent financial discipline within the Metro.

The Freedom Front Plus (VF Plus) has warned on several occasions that the Metro is facing other financial challenges that urgently require attention as well:

  • Only 63% of valid invoices are paid within 30 days, in contravention of the Municipal Finance Management Act (MFMA).
  • The Metro’s cash reserves have dropped to only fifteen days, far below the prescribed requirement of 25 days.
  • There are currently 67 ongoing legal actions against the Metro instituted by unpaid service providers.

The Freedom Front Plus will closely monitor the situation to ensure that the Metro fulfils its obligations and that residents’ right to reliable electricity supply is safeguarded.

FF+ Manifesto on Religious freedom: Upholding the freedom of religion and belief.

Read More at the Source

Category: Tag: , , , , , , , ,

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:

Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Older Persons Grants Land Today — No Need to Queue at Dawn

    Dear Editor, Older Persons grants are paid today, 30 October, under SASSA’s revised November payment schedule — with disability grants on Monday 2 November, children’s grants on Tuesday 3 November, and grants under review on Thursday 5 November. Two things every beneficiary should know. First, grant money does not expire on payment day. It stays…

  • November Grants Pay Early – No Need to Queue at Dawn

    Dear Editor, I run SAGrant (sagrant.co.za), a free resource helping South Africans navigate SASSA grants. November grants pay earlier than usual. Older Persons grants are paid on Friday 30 October, Disability grants on 2 November, and Child Support and other grants on 3 November. Grants still under review are paid on 5 November. The money…

  • NSFAS 2027 applications close on 31 October — SASSA households, apply now

    Dear Editor, I run SAGrant (sagrant.co.za), a free resource helping South Africans navigate SASSA grants. NSFAS applications for the 2027 academic year close on Friday 31 October 2026, and no extension is expected. If your household receives a SASSA grant, your child already passes the NSFAS financial eligibility test — but they still have to…

Reader Interactions

Comments

  2. The child who claims to know as many proverbs as his father should be allowed to pay taxes