Deputy President David Mabuza told Parliament on Thursday afternoon that the task team dealing with Eskom's financial troubles was making progress in getting to grips with the debt owed to the power utility by municipalities, adding that national and provincial department debts to councils would be addressed soon.
However, the debt challenge is further complicated by the fact that the country's municipalities are owed R72 billion by various debtors in 2019, with R10 billion of that owed to municipalities by national and provincial government departments, according to Business Live.
Mabuza said the political task team into energy challenges committed to expediting the payment of outstanding debts owed to Eskom while directing all national and provincial organs of state to settle all outstanding debts to municipalities.
"I want to assure this house that the next time we speak about this matter, national and provincial departments will be out of this equation because they will settle what they owe to municipalities and an arrangement will be made that that money will be paid to Eskom," said Mabuza.
In a supplementary question, Freedom Front MP Tamarin Breedt asked Mabuza to explain the rationale of punishing businesses by declining applications by municipalities to upgrade their power stations, even though they are up to date with their payments.
