National Treasury has received applications from 67 municipalities to write off their collective R56.8 billion owed to Eskom. Of these, 28 applications have already been approved.
National Treasury has confirmed that 67 municipalities indebted to Eskom, collectively owing R56.8 billion, have officially applied to participate in the debt write-off programme.
“By October 2023, 67 applications had been submitted, totalling R56.8 billion or 97% of total municipal debt owed to Eskom at end-March 2023,” said Godongwana. The conditions include enforcing strict credit controls, enhanced revenue collection, and up-to-date payment of the municipality’s current account.
The National Treasury also implied that municipalities participating in the relief programme are expected to show sustained improvement in their financial condition.Finance Minister Enoch Godongwana delivering the 2023 Budget Speech The R184 billion in debt relief will be paid in three tranches: advances of R78 billion during the 2023/24 financial year, R66 billion in 2024/25, and R40 billion in 2025/26.
Eskom must prioritise capital expenditure in transmission and distribution during the debt-relief period
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