The National Treasury says it is terminating the debt-relief programmes for municipalities that have consistently failed to meet their obligations—and the next move is for them to deal with Eskom.
This is according to Finance Minister Enoch Godongwana, who responded to a Parliamentary Q&A on the failure of 61 municipalities in the country to clear their electricity debts.
The debt relief programme ring-fenced historic electricity debt and suppressed related interest, creating space for municipalities to meet ongoing obligations.
However, it is apparent that the programme failed.
The minister noted that 61 municipalities—the vast majority of the 71 that initially…