Finance
Question by:
Hon Denis Joseph
Answered by:
Hon Ivan Meyer
Question Number:
2
Question Body:
What (a) amount was raised by Western Cape Municipalities for electricity during the 2013/14 financial year, (b) amount was paid to Eskom by municipalities during this period and (c) are the reasons why some municipalities failed to pay Eskom.
Answer Body:
- According to the 2013/14 Audited Annual Financial Statements, municipalities in aggregate generated R13.601 billion. The revenue generation performance per municipality is reflected in Annexure A.
- According to the 2013/14 Audited Annual Financial Statements, municipalities in aggregate spend R9.201 billion towards bulk purchases. The spending performance per municipality is reflected in Annexure A.
- Due to the sluggish economic conditions, some municipalities were having challenges to contain the growth in consumer debtors which in turn impeded on their cash flow position. This resulted in some municipalities failing to meet some of its short-term obligations such as bulk purchases from Eskom.
At present, current Eskom accounts are settled timeously by all municipalities in the Province. Payment arrangements are in place and honoured by municipalities with arrears, such as Kannaland and Cederberg.
Annexure A
Date:
Friday, September 25, 2015
