Eskom board chairperson Jabu Mabuza has warned the debt owed by municipalities to the power utility, up from R1.2billion in 2013, was likely to increase to R36bn this time next year.
Cape Town -
Mabuza made the comments when he addressed the standing committee on public accounts in Parliament on Tuesday. He told MPs that in the more than 40 engagements with stakeholders in the inter-ministerial task team to look into Eskom and water boards’ debt, the overdue debt owed to Eskom has escalated.
“Either we misdiagnosed the problem at the time or misprescribed the therapy. Since the establishment of the IMTT, the debt has become bigger,” Mabuza said. Since the IMTT was established, the debt owed was R9.8bn in February 2017 but had ballooned to R26bn last October. “What is worrisome is that between March 2019 and September 2019, this debt has gone up by R6bn. If one looks at this trend by the end of the financial year, this debt would be R30bn,” Mabuza said.
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Debt owed to Eskom may balloon to R36 billion - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Debt owed to Eskom may balloon to R36 billion Eskom has warned that debt owed is likely to balloon to R36 billion by the end of next year, if municipalities fail to pay.
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