Eskom, Maluti-a-Phofung debt battle rages on

Eskom, Maluti-a-Phofung debt battle rages on

Eskom has applied for leave to appeal a high court judgment in favour of the Maluti A Phofung Local Municipality, in the Free State.

On Friday, the Free State Division of the High Court ordered the power utility to immediately lift the attachment of the municipality’s bank account.

Eskom had attached the bank account due to non-payment. The  Maluti A Phofung Local Municipality owes the state-owned electricity company R5.4 billion.

In a statement, Eskom says the move was an execution of a 2018 court order and part of the company’s revenue recovery strategy.

“The Municipality’s continuous non-payment of their current account is resulting in further escalation of their overdue debt and poses a serious threat to Eskom’s financial viability and the survival of the utility. The increasing debt owed by Maluti A Phofung forces Eskom to take drastic steps to address this undeniable risk.”