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Letsemeng’s bank account frozen again by Eskom


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Letsemeng’s bank account frozen again by Eskom

26th July 2023

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance (DA) is deeply concerned about Letsemeng Local Municipality's inability to adhere to the payment agreement set out in the court judgement between Eskom and the municipality. For the third time since December 2022, a debit hold has been placed on the municipal account.

On 21 July 2023, Eskom issued a written execution against the municipality for failing to fulfil the payment agreement, resulting in a debit hold on their accounts. This means the municipality can only receive deposits and cannot make any payments, including salaries for municipal employees. Once again, the ANC-led municipality has put its employees in a difficult predicament.

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This situation creates numerous problems, as funds are diverted from their intended purposes, negatively impacting service delivery. Previously, the Municipal Infrastructure Grant (MIG) was lost to Eskom due to a hold on the banking account, and the municipality has been unable to recover. As a consequence, contractors may not receive timely payments, leading to stalled MIG projects until they are compensated.

Furthermore, employees responsible for essential service delivery will face delays in receiving their salaries. The DA appreciates the dedication of those employees who still go out and assist communities despite these challenges. However, if the issue with Eskom is not promptly addressed, the municipality may lose skilled and hardworking employees, directly impacting service delivery. Moreover, acquiring new supplies for essential services, such as clean water and electricity repairs, will become difficult without a resolution with Eskom.

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The DA calls for immediate action through a Section 139 intervention, as outlined in the Constitution of South Africa. This intervention empowers the provincial executive to step in when a municipality fails to fulfil its constitutional or legislative obligations, including budget approval and revenue-raising measures necessary for budget implementation.

It is crucial to resolve this issue promptly to ensure that Letsemeng Municipality can meet its financial obligations, maintain essential services, and provide a better future for its residents. The DA will continue to advocate for the intervention to protect the well-being of the community.

 

Issued by Mariska Potgieter - DA Councillor Letsemeng Local Municipality

 

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