Local Government, Environmental Affairs and Development Planning
- Which five municipalities in the province have the most debt with Eskom, (b) which municipalities do not meet the cash-coverage threshold requirement of one to three months and (c) what are the contributing factors that causes these municipalities not to meet the cash-coverage threshold?
12(a) Which five municipalities in the province have the most debt with Eskom
It should be noted that the Western Cape only have four municipalities with debt amounts owed to Eskom that are older than 30 days.
The following table depicts the top four municipalities in the Western Cape with the most debt due to Eskom:
Municipality | Total debt over 30 days |
Matzikama | 122,076,458 |
Beaufort West | 78,892,293 |
Cederberg | 42,833,423 |
Kannaland | 43,939,807 |
Source: Eskom Section 41 Report
12(b) Which municipalities who do not meet the cash-coverage threshold requirement of one to three months
The following municipalities do not meet the cash-coverage threshold:
- Laingsburg;
- Cederberg;
- Knysna;
- Matzikama; and
- Kannaland.
12(c) What are the contributing factors that causes these municipalities not to meet the cash-coverage threshold
The following factor contributes to municipalities not meeting the cash-coverage threshold:
- Rising fuel prices, interest and inflation are affecting customers’ ability to pay their accounts.
- Municipal debt amounts are accumulating due to the culture of non-payment and municipalities are not collecting the amounts due to them.
- Weaknesses in cash management practices and poor implementation of internal controls.
