Western Cape municipal debt update | Western Cape Government

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Western Cape municipal debt update

19 March 2021

Four municipalities out of thirty in the Western Cape are currently in arrears with Eskom.

The following amounts as overdue:

  • Matzikama: R7.1 million
  • Cederberg: R39.6 million
  • Kannaland: R13.9 million
  • Beaufort West: R29.1 million

Anton Bredell, the minister of Local Government, Environmental Affairs and Development Planning in the Western Cape, says the department of Local Government in the province monitors municipalities in the province to determine if bulk service accounts are being settled timeously.

“We are very pleased to note that 26 of our municipalities are currently in good standing with Eskom. We are working hard with the other four to arrange payment terms and to ensure the situation is resolved as speedily as possible.”

Bredell says most municipalities in the province are rural and struggling with severe financial challenges.

“There is, however, no excuse to not pay your Eskom bill. Municipalities are able to reallocate the profit they get for facilitating electricity to their communities, but the amount owed to Eskom should not be utilized for other costs like that of personnel costs at a municipality.”

Bredell has congratulated Western Cape municipal leaders for keeping their accounts clean and has urged the ones that remain outstanding to work with the province to resolve their debt challenges.

Bredell has further welcomed the recent allocation of provincial funds towards the Municipal Energy Resilience (MER) Project in the Western Cape.

“The funding will assist selected municipalities in their efforts to become more energy resilient given ongoing challenges with electricity supply in the country. The provincial treasury has allocated R48.8 million over the medium term and will provide a further R20 million in the provincial reserves for Project.”

The six candidate municipalities participating in the first phase of the MER Project are:

  • Drakenstein Municipality; 
  • Mossel Bay Municipality; 
  • Overstrand Municipality; 
  • Saldanha Bay Municipality; 
  • Stellenbosch Municipality; and
  • Swartland Municipality.
Media Enquiries: 

James-Brent Styan

Spokesperson for the Minister of Local Government, Environmental Affairs and Development Planning, Anton Bredell

Mobile:                   084 583 1670

Telephone:            021 483 2820

E-mail:                    James-Brent.Styan@westerncape.gov.za