Per week after it introduced it had connected a checking account belonging to the Matjhabeng municipality, which incorporates the Free State city of Welkom, Eskom has connected 139 farms belonging to the council as safety on R3.Four-billion in excellent debt.
The farmland has an estimated worth of R2.5-billion, Eskom stated in a press release on Tuesday.
The municipality agreed at hand over the 139 farms it owns as safety on the debt. The title deeds of the farms will likely be endorsed in favour of Eskom till the debt dispute between Eskom and the municipality is finalised. The settlement has been made an order of the excessive courtroom within the Free State.
“This step on the a part of Eskom is a results of the repeated failures by the municipality to stick to its cost obligations to Eskom for the majority provide of electrical energy,” the state-owned utility stated in a press release.
“As a part of the settlement, the municipality has withdrawn its software through which it sought to uplift the attachment of its checking account by Eskom, which was granted on Four September. Eskom has agreed to uplift the attachment of the account and the account was handed again to the municipality. The funds within the account, particularly R2.7-million, will stay connected and within the care of the Sherriff of the courtroom,” Eskom stated.
Risk to sustainability
It stated the municipality has constantly did not honour its obligations and cost agreements, in addition to courtroom orders.
“Whole excellent municipal debt of R31-billion as at end-July 2020 continues to threaten Eskom’s sustainability. Municipalities have a duty to fulfil their monetary obligations for the majority provide of electrical energy.” — © 2020 NewsCentral Media
This text was revealed with the permission of Tech Central. The unique publication could be considered here.