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ESKOM TAKES STEPS TO COLLECT OVERDUE DEBT FROM MALUTI-A-PHOFUNG
WEDNESDAY, 22 JULY 2020: In execution of a court order granted in 2018 and in implementation of its revenue recovery strategy, Eskom on 21 July 2020 attached the bank account of Maluti-a-Phofung Local Municipality in the Free State.  This resulted in the account being frozen.  Upon response by the bank, funds in the account will be transferred to Eskom, to help us recover a portion of the R5.3 billion owed by the Maluti-a-Phofung Municipality.
 
This step on the part of Eskom is a result of the repeated failures by the municipality to adhere to its payment obligations to Eskom for the bulk supply of electricity. 
 
Eskom will continue to explore all available legal avenues to ensure that outstanding municipal debt is recovered.
 
The outstanding municipal debt of R30.9 billion as at end June 2020 continues to threaten Eskom’s sustainability, and municipalities have a responsibility to fulfil their financial obligations for the bulk supply of electricity.
 
ENDS