MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / Treasury extends Eskom Municipal Debt Relief Support Programme

Treasury extends Eskom Municipal Debt Relief Support Programme

National Treasury, Republic of South Africa
Download logo

On 31 March 2023, National Treasury’s Intergovernmental Relations unit issued MFMA Circular No. 124 (https://bit.ly/43DcphL) as part of the Eskom Municipal Debt Relief. Government’s debt relief package for Eskom is intended to improve the utility’s balance sheet and facilitates the proposal for Eskom to write off municipal debt under strict conditions and with the guidance of the National Treasury. The primary problem government wants to solve is Eskom’s financial and debt crisis which also requires a solution for non-payment of electricity consumption by municipalities.

Following the issuance of the Municipal Debt Relief MFMA Circular No. 124, the National Treasury’s Intergovernmental Relations unit embarked on a national roadshow to engage provincial treasuries and municipalities on the contents of the Circular, and to encourage qualifying municipalities to apply for the debt relief programme. The workshops aimed to eliminate misconceptions, clarify areas municipalities may be unclear on, and unpack the conditions attached to participating in the programme.

Of South Africa’s 257 municipalities, 136 municipalities owed Eskom R58.5bn in arrears debt as of 31 March 2023. As of 22 September 2023, 37 municipalities have applied to be part of the Eskom Municipal Debt Relief Support Programme, 28 of the 37 have been approved with 9 of them still being assessed. There are 25 additional applications resting with the respective provincial treasury for submission for approval.

The closing date for the Eskom Municipal Debt Relief Support Programme was set for the 30th of September 2023 and has now been extended to 31 October 2023 to accommodate more municipalities into the programme.

Distributed by APO Group on behalf of National Treasury, Republic of South Africa.

On 31 March 2023, National Treasury’s Intergovernmental Relations unit issued MFMA Circular No. 124 (https://bit.ly/43DcphL) as fraction of the Eskom Municipal Debt Relief. Government’s debt relief package for Eskom is intended to improve the utility’s balance sheet and facilitates the proposal for Eskom to write off municipal debt under strict conditions and with the guidance of the National Treasury. The primary problem government wants to solve is Eskom’s financial and debt crisis which also requires a solution for non-payment of electricity consumption by municipalities.

Following the issuance of the Municipal Debt Relief MFMA Circular No. 124, the National Treasury’s Intergovernmental Relations unit embarked on a national roadshow to engage provincial treasuries and municipalities on the contents of the Circular, and to encourage qualifying municipalities to apply for the debt relief programme. The workshops aimed to eliminate misconceptions, clarify areas municipalities may be unclear on, and unpack the conditions attached to participating in the programme.

Of South Africa‘s 257 municipalities, 136 municipalities owed Eskom R58.5bn in arrears debt as of 31 March 2023. As of 22 September 2023, 37 municipalities acquire applied to be fraction of the Eskom Municipal Debt Relief Support Programme, 28 of the 37 believe been approved with 9 of them still being assessed. There are 25 additional applications resting with the respective provincial treasury for submission for approval.

The closing date for the Eskom Municipal Debt Relief Support Programme was set for the 30th of September 2023 and has now been extended to 31 October 2023 to accommodate more municipalities into the programme.

Per Kind Favour of APO

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:

  • Fun South African fact

    Dear Editor Fun South African fact: towns like Franschhoek and Stellenbosch are home to world-class wine farms set in stunning, scenic surroundings. Regards Aressa Smith In Response to/From: Luxury Properties Seized in New Lottery Crackdown

  • Condolences on the Passing of Lusanda Dumke

    Statement by Leander Kruger MPL – DA Buffalo City Constituency Leader: The Democratic Alliance in Buffalo City Metropolitan Municipality mourns the passing of Springbok Women’s rugby player and Mdantsane trailblazer, Lusanda Dumke, who lost her battle with cancer at the age of 28. South Africa has lost an exceptional athlete, a leader, and a source…

  • Rape Kits Delivered, But…

    Statement by Nicholas Gotsell MP – DA NCOP Member on Security & Justice: The DA can confirm that 2 840 rape kits arrived in Cape Town on Monday, following sustained DA oversight and pressure after multiple police stations across the Western Cape were found to be without this critical forensic evidence tool. While this delivery…

Reader Interactions

Comments

  1. Fun South African Fact: Three different destinations make up South Africa’s capital cities. This is to represent the South African government being divided into three sections. Cape Town is the legislative capital, Pretoria is the administrative capital and Bloemfontein is the judicial capital. Interestingly, Parliament meetings take place for six months in Cape Town and six months in Pretoria.

  2. It is wise to remember that firefighters fight fire with water before you fight fire with fire