Ruil transaksies: Kontant verruil om iets te koop of te besit. Daarteenoor is daar die bakhand bestaan – die grootste sondebokke is die regering wat dit toelaat omdat hulle so geleer is. Dit sluit al die miljoene immigrante uit Afrika in wat dieselfde verwagtinge koester. Daar is slegs ‘n handvol wat duur betaal, meer as wat hul moet en die ander fisies dra, wat gratis verwag word. Skep ‘n klimaat van betaal eers of ontvang niks. Word by Clicks, Checkers of Pick en Pay ingewals, trollies volgelaai en daarmee uitgestap sonder om een sent te betaal? Word daar by ‘n lughawe opgedaag om gratis heen te vlieg vir vakansie? Daar kan nie ‘n bus of trein verpas word as daar ‘n wettige kaartjie in die hand is nie. Betaal vir die vee of pluimvee as jy dit wil besit. Betaal eers, dan mag daar gevlieg, gery of geneem word. Dit word geruil vir kontant, dus betaal eers voor enige ontvangs kan plaasvind.
Dit is egter nie so in ons werklike lewe nie, maklik om dit op papier te plaas, maar nie so eenvoudig om dit uit te voer deur veral sekere organisasies en politieke partye nie. Hier is ‘n paar voorbeelde… en vir wat dit werd mag wees.
Korrupsie is ook misdaad – steel bly steel en moord bly moord.
Dit gaan nie oor beloftes maak skuld nie, indien iemand daardie belofte gemaak het, gaan eis dit van daardie persoon of organisasie, nie van die wat betaal vir iets wat hulle verlang nie. Hou op steel – dit is en bevat geen ruiltransaksies nie, dit behoort nie aan jou nie, maar aan iemand anders. Korrupsie is gevaarlik en die leiers, wat veronderstel is om voorbeelde te wees, stel hul geweld bloot hieraan of maak dit ‘n alledaagse sonder vervolging.
When you want to buy or own something you need, you pay for that item. Nothing is for free. To use illegal electricity and steal from Eskom it is steal. Create a climate of payment or receive nothing or live without it.
When you enter Clicks, Checkers or Pick and Pay, load trolleys of nice things and left out without paying one cent, what do you think will happen to you?
Are you arriving at an airport to fly to any destination for free? There cannot be a bus or train to be missed if there is a legal ticket in your hand.
Pay for the cattle or chickens if you want to own it. First pay, then fly, drive or stay at home. It is exchanged for cash, so pay only before any receipt takes place. Buy your home, car or farm, nothing is for free. Not even a RDP house is for free, somebody paid for that house.
Misdaad is ‘n groot inkomste vir regering, loop hand aan hand met swart bemagtiging en armoede. Blankes word steeds (vir 25 jaar al) weggehou van enige ekonomiese ontwikkeling. Blankes word afgedreig met onteiening van alle bates, terwyl ‘n groot persentasie blankes reeds in armoede vasgevang en verswelg is weens swart bemagtiging.
Onteiening is diskriminerende wetgewing. Politieke leiers moedig misdaad aan om veral blankes te teiken. Wanneer besighede deure sluit juis as gevolg van swart bemagtiging, is dit werkers wat werkloos raak, en dit sluit alle ander etniese rasse hierby in. Wanneer ‘n plaasboer of enige ander entrepreneur vermoor word, verloor heelwat werkers inkomste en armoede volg, dus is misdaad wat hieruit voortspruit heelwat groter waar die regering inkomstes verdien. Blanke armoede word ontken deur die regering.
White South African farmers are being threatened, intimidated, persecuted, attacked and murdered off one by one from their land, unabated. The ruling ANC government says their land reform policy is primarily to correct past imbalances and that is questionable. BUT how many of the now expropriated farms are equality as productive and how many future expropriated farms can we expect to help feed the nation?
At the time; October, 26th, 2014 when Cyril Ramaphosa was still deputy president he said words to this effect …
“Johannesburg – Black Economic Empowerment (BEE) is necessary to build a prosperous society, Deputy President Cyril Ramaphosa said.
“Black Economic Empowerment is necessary not only to satisfy the imperatives of the Constitution. It is necessary not only to correct the wrongs of the past. It is necessary and essential if we are going to build a prosperous, sustainable and equitable society.”
There is NOTHING WHITE PRIVILEGED about being a white minority South African when we are being;
Ostracised, persecuted, demonised, subjected to racism, hate speech, inequality, Affirmative Action (AA), (BEE) Black Economic Empowerment a system of preferential treatment for employment does not include whites.
White South Africans are been attacked physically, morally and spiritually and then MURDERED into extinction!
Ramaphosa started after 1994 with his commission regarding Black Economic Empowerment.
In 1998 Affirmative Action was introduced that barred all white South Africans from the employment market. Proving a stark contradiction of Mandela’s promise that “Let there be work, bread, water for all?”
Section Nine of the Constitution of South Africa guarantees Equality before the Law and freedom from discrimination to the people of South Africa. This equality right is the first right listed in the Bill of Rights.
It prohibits both discrimination by the government and discrimination by private persons; Under the heading “Equality”, the section states the following points;
9. (1) Everyone is equal before the law and has the right to equal protection and benefit of the law.
(2) Equality includes the full and equal enjoyment of all rights and freedoms. To promote the achievement of equality, legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination may be taken.
(3) The state may not unfairly discriminate directly or indirectly against anyone on one or more grounds, including race, gender, sex, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture, language and birth.
(4) No person may unfairly discriminate directly or indirectly against anyone on one or more grounds in terms of subsection.
(5). National legislation must be enacted to prevent or prohibit unfair discrimination.
Another very sorry state of affairs when your Constitution discriminates and means nothing to you because you are white.
Is there a way out? How do people arrive at this position? Some blame forced retrenchments and affirmative action and Black Economic Empowerment Employment laws (BEEE) for white poverty. Many thousands of white South Africans have been neglected by a “racially biased” government and it is probably the only kind of poverty in the world that is ignored because of politically correct reasons.
Recently as of 14th November, 2018.
Now President of South Africa, Cyril Ramaphosa warns the European Union (EU) >> “The resurgence of racism and xenophobia cloaked into the mantle of nationalism is rising and is causing a great deal of concern in a number of places. Unilateralism is on the rise and threatens in many ways to underline our collective commitment to democratic values and the respect of human rights. Now, more than ever, we turn to our great leaders for strength and inspiration as we seek to resolve some of the most pressing issues of our times,” he said.
European Union (EU) wants relaxation of Black Economic Empowerment (BEE) laws before investing in South Africa.
Going into last week’s summit – the first in five years – the Europeans wanted a long list of concessions to facilitate increased investment in the country from a federation that accounts for 25% of South Africa’s trade and about 75% of the country’s total foreign direct investment.
South Africa’s biggest state companies have been plagued by mismanagement, cash shortages and corruption scandals for years, leaving them in financial strain and posing an acute risk to the nation’s finances.
The state power utility has been mired in a series of scandals, including allegations of corruption linked to the Guptas and their allies, and has swung from being unable to generate sufficient electricity to supply Africa’s most-industrialised to economy to having excess capacity. It’s currently battling to secure enough coal for its power plants and raise sufficient funding to meet its operating needs after a string of credit-rating downgrades.
The freight rail, port and pipelines operator has also been accused of doing questionable deals with the Guptas and their allies, enabling them to earn massive kickbacks on a locomotives deal.
The commuter-rail service has stumbled from one management crisis to the next, and a report by the nation’s graft ombudsman revealed systemic corruption at the agency. The main opposition party has laid criminal charges against its former chairperson, Sfiso Buthelezi, and ex-CEO Lucky Montana in connection with their role in concluding irregular contracts. They both deny wrongdoing.
The state-owned carrier has lost money for the past six financial years, leaving it desperately short of cash. It’s appealed to the government for R5bn to cover immediate costs and warned it will struggle to make R9.2bn in debt payments due March 2019. This follows the state transferring funds to the airline in September to avoid a default on debt to Citigroup. The government overhauled SAA’s board in October, with Chairperson Dudu Myeni, who ran Zuma’s charitable foundation, among those to be replaced. The following month Vuyani Jarana, a former executive at wireless carrier Vodacom Group, was appointed as CEO. He’s in the early stages of a turnaround plan to enable SAA to break even by 2020 and ease dependency on the government.
First they heard about the spies. Then they heard about the secret brothels and the private planes. And the whole time, they were hearing about the assassins. The details exposed in South Africa’s corruption scandals have upended the country’s perception of the governing party, the African National Congress, threatening its decades-long control of the government.
The leaders of the A.N.C. have benefited themselves and their allies, siphoning off tens of billions of dollars of public funds meant to improve the lives of black South Africans. In a case emblematic of the widespread corruption, a failed plan for a dairy farm controlled by landless black farmers lost $21 million of public funds, but still managed to enrich South African elites.
The South African Revenue Service, the country’s tax collection agency, was once a showcase of good governance, and the country’s increasing tax revenue was a barometer of support for the young South African democracy. It has since been gutted by former president Jacob Zuma in an effort to avoid paying his own taxes, with the help of auditing firm KPMG. A
s public trust erodes, so do tax revenues, and the A.N.C.’s remedy is expected to hit poor South Africans hardest.
In 2015, the famed consulting firm McKinsey & Company signed on to what would become its biggest contract ever in Africa: a deal to save Eskom, South Africa’s state-owned power company. The deal was illegal, and the partnership only lasted for eight months, but Eskom still paid out $100 million in public funds as electricity prices rose.
When Cyril Ramaphosa took office as South Africa’s president, he promised of a “new dawn.” This promise is being undermined by his deputy president, David Mabuza, who has left a trail of corruption in the wake of his meteoric rise within the A.N.C. Under his leadership, children drowned after falling into dilapidated school pit toilets and millions of dollars in education funding disappeared.
In July 2017, Sindiso Magaqa was ambushed by gunmen and murdered after accusing A.N.C. officials of pocketing millions of dollars intended for a building renovation. He’s one of nearly 90 victims of political assassinations in South Africa since 2016, a sharp rise over previous years. In most of these cases A.N.C. members hired hit men in a fight over money and power and to keep their vast corruption a secret.
The three Gupta brothers came to South Africa seeking opportunities, and in their 25 years there, they went from selling shoes to showing off their private plane. From large multination corporations that paid them for access, to A.N.C. officials who diverted money meant for the poor, the Guptas were able to find willing partners throughout the country. When their corruption could no longer be ignored, they left, and like so many foreigners before them, took their windfall out of Africa.
27 August 2018
Annual Report of the Parliament of the Republic of South Africa for the period of 2017/18 submitted by Ms B Mbete, Speaker of the National Assembly and Ms T R Modise, Chairperson of the National Council of Provinces
Accounting Officer statement – Parliament did not have sufficient resources for the 2017/18 financial year due to the shortfall in the budget that amounted to R 1,084,173, 000 billion. Ms P Tyawa
CONFIRMATION OF PARLIAMENT DUTIES
Parliament is responsible for administering the following legislation:
Table 1: Legislative Mandate of Parliament
Constitution of the Republic of South
Africa, 1996 (Act No. 108 of 1996)
Chapter 4 of the Constitution stipulates how
Parliament must conduct its work – its composition,
functions and powers.
Financial Management of Parliament
and Provincial Legislatures Act, 2009
(Act No. 10 of 2009)
To regulate the financial management of Parliament
in a manner consistent with its status in terms
of the Constitution; to ensure that all revenue,
expenditure, assets and liabilities of Parliament are
Money Bills Amendment Procedure
and Related Matters Act, 2009 (Act
No. 9 of 2009)
To provide for a procedure to amend money Bills
before Parliament and for norms and standards for
amending money Bills before provincial legislatures
and related matters.
Powers, Privileges and Immunities of
Parliament and Provincial Legislatures
Act, 2004 (Act No. 4 of 2004)
To define and declare certain powers, privileges and
immunities of Parliament, provincial legislatures,
members of the National Assembly, delegates to
the National Council of Provinces and members of
provincial legislatures; and to provide for incidental
STRENGTHENING OVERSIGHT AND ACCOUNTABILITY
In its efforts to bring to life its vision of being “an activist and responsive people’s Parliament”, Parliament instituted a number of inquiries where more in-depth scrutiny was required. These included inquiries into the South African Broadcasting Corporation (SABC), ESKOM, the Department of Social Development, and the matter of political party funding. The inquiries became key features for the 5th Parliament, ensuring improved scrutiny of executive action and accountability.
LEGISLATION AND BUILDING LEGISLATIVE CAPACITY
In 2017 a total of 18 bills were passed by the National Assembly and the National Council of Provinces and of these 18 were assented to by the President.
• Financial Intelligence Centre Amendment Bill [B 33D-2015 (s75)] (assented to 26 April 2017; GG 40821)
• Justice Administered Fund Bill [B 26-2015 (s75)] (assented to 4 April 2017; GG 40773)
• Division of Revenue Bill [B 4-2017 (s76)] (assented to 26 May 2017; GG 40871)
• Criminal Procedure Amendment Bill [B 2B-2017 (s75)] (assented to 27 June 2017; GG 40946)
• Protected Disclosures Amendment Bill [B 40D-2015 (s75)] (assented to 31 July 2017; GG 41016)
• Appropriation Bill [B 5-2017 (s77)] (assented to 4 July 2017; GG 40971)
• Courts of Law Amendment Bill [B 8B-2016 (s75)] (assented to 31 July 2017; GG 41017)
• Judicial Matters Amendment Bill [B 14B-2016 (s75)] (assented to 31 July 2017; GG 41018)
• Financial Sector Regulation Bill [B 34D-2015 (s75)] (assented to 21 August 2017; GG 41060)
• Division of Revenue Amendment Bill [B 24-2017 (s76)] (assented to 12 December 2017;
• Refugees Amendment Bill [B 12D-2016 (s75)] (assented to 14 December 2017; GG 41343)
• Adjustments Appropriation Bill [B 25B-2017 (s77)] (assented to 12 December 2017; GG 41323)
• Tax Administration Laws Amendment Bill [B 28-2017 (s75)] (assented to 14 December 2017; GG 41341)
• Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 26-2017 (s77)]
(assented to 12 December 2017; GG 41323)
• International Arbitration Bill [B 10B-2017 (s75)] (assented to 19 December 2017; GG 41347)
• Legal Practice Amendment Bill [B 11B-2017 (s75)] (assented to 17 January 2018; GG 41389)
• Taxation Laws Amendment Bill [B 27-2017 (s77)] (assented to 14 December 2017; GG 41342)
• Insurance Bill [B 1B-2016 (s75)] (assented to 17 January 2018; GG 41388)
ANNUAL FINANCIAL STATEMENTS
(from page 91)
Report of the auditor-general to Parliament on vote no. 2: Parliament of
the Republic of South Africa. (from page 137)
Click to access AnnualReport2017-2018.pdf
R2.5bn down the drain. This is the amount of money the Auditor-General of South Africa (AGSA) found to have been fruitless and wasteful expenditure in South African state departments and state-owned Entities (SOEs).
This figure increased by more than 200% from the previous year, Auditor-General Kimi Makwetu said on Wednesday as he presented the AGSA’s general report on national and provincial audit outcomes for 2017-’18.
“Government cannot afford to lose money because of poor decision-making, neglect or inefficiencies,” Makwetu said. “However, we continue to see a rise in fruitless and wasteful expenditure. This expenditure, which is effectively money lost, increased by over 200% from the previous year.
“The overall increase was mostly a result of the R1 022m loss by the Water Trading Entity, where payments were made without resultant progress on water infrastructure projects.”
Makwetla said these were avoidable costs that could be contained by following the correct processes.
Furthermore, R5.1bn was recorded as irregular expenditure over the past financial year.
“This total includes the irregular expenditure of auditees where AGSA had completed the audits after the cut-off date of this report (R5.4bn). It is worth noting that the R51bn excludes the SOEs that are not audited by the AGSA, whose total irregular expenditure totalled R28.4bn, which included R19.6bn at Eskom and R8.1bn at Transnet.”
The departments of education, health and public works continued to have the poorest audit results of all departments – 33% of these departments received qualified opinions, compared to only 16% of the other departments.
Only two of the departments in these sectors received clean audit opinions.
This cluster of departments is responsible for just over half of the departmental budgets and for implementing key programmes to improve the health and welfare of citizens.
Makwetu warned that the financial health of the provincial departments of health and education “needs urgent intervention to prevent the collapse of these key service delivery departments”.
He said these departments are “in a bad state” compared to other departments.
For example, the unauthorised expenditure by provincial education departments stood at almost R1bn and the deficit incurred by the Eastern Cape education department alone was R1.7bn.
He is even more concerned about health departments.
The provincial health departments of the Eastern Cape, Free State and Northern Cape are in a “vulnerable position”.
The total deficit of the health departments stood at R8.4bn
All the health departments, except the Western Cape and Free State, had claims against them that were more than their 2018-19 total operational budget.
The claims of the Eastern Cape health department was more than three times more than its operational budget.
The report also had the following findings:
- The quality of the performance reports improved slightly so that 65% of the auditees are now publishing credible reports. However, the AGSA received performance reports for auditing with substantial misstatements.
- At a national level, there was a regression in audit outcomes, with the number of clean audits decreasing to 23% of the total audited population compared to 30% in the previous financial year.
- Provincially, the Western Cape and Gauteng continued to produce the best results – with 83% and 52% clean audits, respectively.
- There were serious weaknesses in the financial management of national and provincial government that had not been addressed over the past four years.
- Unauthorised expenditure increased by 38% from the previous year to R2.1 bn, 86% of which was a result of overspending.
- The financial health of auditees continued to deteriorate.
- There was an emerging risk of increased litigation and claims against departments. Almost a third of the departments had claims against them in excess of 10% of their next year’s budget. “Departments do not budget for such claims, which means that all successful claims will be paid from funds earmarked for the delivery of services, further eroding the ability of these departments to be financially sustainable,” Makwetu warned.
- A total deficit of R35.1bn was incurred by the 41% of public entities whose expenditure exceeded their revenue – 75% of this was the deficit of the Road Accident Fund. the AG’s report cautioned that “even though the majority of public entities that incurred deficits would be able to continue their operations, these negative indicators raise concerns about their financial viability, which could result in pressure to acquire additional funding from government”.
- The auditees that substantially did not comply with legislation increased from 64% to 72%. The AG said the lapse in oversight and controls in the area of compliance was evident in a number of areas, including supply chain management (SCM), and led to increased irregular expenditure.
The non-compliance with SCM legislation increased. Makwetu stressed that the status “was even worse than in 2014-15”.
23 August 2018
Ghost vending is the illegal sale of prepaid electricity tokens from a Point Of Sale that has previously been stolen.
Eskom loses R350m to ‘ghost vending’
Pretoria News 2014 – Power utility Eskom loses millions of rand a year because of illegal buying and selling of prepaid electricity vouchers.
Estimated R350 Million per year
Illegal buying and selling of prepaid electricity is called ghost vending, and Eskom’s senior manager for energy trading, Maboe Maphaka, says the utility loses at least R350 million a year to the practice.
Reason for Ghost vending and delayed solutions to the problem
1. Utility legacy solutions, “stand alone vending terminals or off line vending terminals” that have been stolen are the main cause for Ghost vending.
2. Municipalities not recovering or managing encryption modules
3. Sadly Municipalities are still purchasing Stand Alone units and specifying these terminals in tenders
4. Suppliers are still selling “stand alone terminals”
5. Meters that are installed with no valid address or point of connection (upfront vending)
6. Meter audits, incomplete, incorrect or poor information collected during audits
7. Senior council members not buying-in, we need to lead from the top and get SAP involved
Click to access Ghost%20Vending_Harold%20Hayes.pdf
As things stand, 96 municipalities owe Eskom an estimated R 27. 8 billion.
Eskom has had to cut supply to at-least 17 municipalities, sign 56 payment agreements and is a respondent to at least three court cases.
Speaking to Bongani Bingwa, Group Executive of Customer Services at Eskom, Ayanda Noah says 40% of their revenue comes from municipalities.
So, this is something that worries us because it has been coming for many years, since about 2010, we have noticed that the arrear debts that the municipalities owe us, has been going up.
— Ayanda Noah,Group Executive of Customer Services at Eskom
It started off at about R500 million in 2010 and now it is sitting at about R14,5 billion. To contextualise the R28.7 billion that you refer to, R14.5 billion of that is arrear debt.
— Ayanda Noah,Group Executive of Customer Services at Eskom
In other words, it is unpaid money that is due to Eskom.
— Ayanda Noah,Group Executive of Customer Services at Eskom
15 June 2018
Cash-strapped Eskom is owed just more than R13bn by municipalities, with the top 10 nonpayers owing R10bn. In turn, municipalities are owed R139bn by residents for services. Some residents have attributed their failure to pay for electricity to high levels of unemployment and poverty.
Eskom found itself in a severe financial crisis in late 2017 after lenders turned off the taps due to state capture and corruption allegations. The company has a debt burden of R350bn‚ increasing by about R70bn a year. The Reserve Bank has warned that the rising contingent liabilities of state-owned entities remain a concern and could lead to further credit ratings downgrades. Eskom had previously threatened to cut off supply to the municipalities.
“All the parties are determined to find lasting solutions and municipalities have indi-cated that they are keen to support all the efforts and implement the decisions deriving from the process [to address the Eskom debt],” said Mkhize.
CULTURE OF NON PAYMENT – GHOST VENDINGS AND ILLEGAL CONNECTIONS
Spiralling debt, compounded revenue losses, a chain of non-payment and ‘ghost vending’ – these were just a few of the issues listed when Parliament’s Standing Committee on Public Accounts heard from the municipalities not paying their debts to Eskom.
The top ten defaulting councils were in the hot seat before Scopa on Wednesday morning, explaining why they continually failed to settle their debts to the embattled power utility.
They cited structural challenges in their own financial practices as well as historical financial constraints. They also blamed their own communities for refusing to pay power rates, and in some cases, said the parastatal had unrealistic expectations of their ability to pay their debts.
Municipalities themselves are owed some R100bn by households, business and provincial and national government.
According to information from Eskom, the total debt it was owed by municipalities in May stood at over R13bn, with the top ten defaulters on payment owing close to R10bn.
Eskom is considering approaching the courts over a lower tariff increase than the power utility hoped for from the National Energy Regulator of South Africa (Nersa).
The top defaulters include Matjhabeng Local Municipality in the Free State, Ngwathe Local Municipality in the Free State, Govan Mbeki Local Municipality in Mpumalanga Province, Ditsobotla Local Municipality in the North West, Naledi Local Municipality in the North West, Emalahleni in Mpumalanga and Lekwa Local Municipality in Mpumalanga.
Matjhabeng municipal manager Thabiso Tsoaeli told Scopa that there was a high percentage of unemployment and poverty in that municipality, which has historically had a negative impact on collections.
READ: Here are the top ten municipal culprits not paying Eskom debt
“Before July 2014, the municipality was charging a flat rate for electricity, and not the tariff that Eskom was awarded. But when we introduced that in July, there was resistance. We went to court and were challenged by the Goldfields Chamber of Business,” said Tsoaeli.
Tsoaeli said council approved the municipality’s payment plan, which it shared with Eskom. There was a principle agreement with Eskom that if Matjhabeng paid R45m each time it received the equitable share from government, it would be able to pay the debt over a 13-year period.
“In March, we paid R33.5m and we started ring-fencing amounts for repayment in April.
“We also presented a financial recovery plan to Eskom to audit our meters, as we found out that even those who can pay are stealing electricity,” Tsoaeli said.
Emalahleni acting municipal manager Sizwe Mayisela said Emalahleni was close to Eskom’s Kusile Coal Power Station. He said the station’s construction was winding down, and a huge number of the people that relied on those jobs during the construction and development phase were returning to Emalahleni with no source of income.
‘A culture of non-payment’
“Emalahleni has a lot of people depending on social grants, increasing from 34 000 to 89 000 between 2012 and 2017. The unemployment rate increased from 25% to 27% in the same time.
“Among the youth, the unemployment rate is as high as 32%,” said Mayisela.
Mayisela said Emalahleni was currently paying Eskom. However, he said, while the outstanding balance in 2012 on the debt stood at about R58m, Eskom arrived at a figure of R1.7bn in outstanding debt in a space of five years, all while the municipality was servicing the debt.
“Emalahleni has a large number of Eskom employees, and we are told that they are involved in illegal connections to electricity in the area. There is a culture of non-payment and resistance from our communities, and […] local officials are threatened when they urge residents to pay,” said Mayisela.
Ditsabotla acting municipal manager Thabo Sebothenyane said the collection rate at that municipality stood at 50%, and the council was trying to improve on its revenue collection for electricity.
“Our current debt with Eskom stands at about R305m. In 2016, our council entered into a payment agreement; it was at R146m. Between then and now, we have paid around R50m, but it is evident that our debt has not decreased, but is growing,” said Sebothenyane.
Illustrating the financial crises of the council, Sebothenyane said the average collection per month was R18m and operation cost was R20m, while Ditsabotla’s salary bill stood at R14m. On top of this, they had to find a way to pay R10m to Eskom.
Ngwathe municipal manager Bruce Kannemeyer told Scopa that technical constraints and efforts by some residents to crook the system had undermined revenue collection from residents that consume electricity.
“We have performed a high level analysis between the consumption billing from Eskom to Ngwathe and Ngwathe municipal billing to the consumer. The outcome of the analysis indicates that the council has lost R169m over a period of three years due to technical losses,” said Kannemeyer.
By-passing and ghost vending continue to compound the municipality’s losses, allowing households to access unlimited amounts of electricity without proportional or even flat rates for the power they consume, he said.
Govan Mbeki acting municipal manager Sechaba Mokoena said the government owed Govan Mbeki R18m. He said the conflation of historical debt to Eskom and the debt on the municipality’s current account made it impossible to get a grip on the spiralling debt.
“We paid R542m of the Eskom bill, but we are struggling with old historical debt. If we look into that then we won’t have a problem getting a handle of our debt. Up to 22% of potential revenue is lost through illegal connections and ghost vending,” said Mokoena.
Ghost vending is the illegal and selling of prepaid electricity vouchers, and is thought to lose Eskom hundreds of millions per year.
Lekwa mayor Linda Dhlamini told Scopa that one of the biggest challenges in repaying the debt to Eskom was that payment culture remained extremely low among residents.
“We are dealing with a situation where we are given 15 days to pay and we give our consumers 30 days to pay, and this allows the interest to accumulate aggressively. Because we are partners with Eskom, we look to them to assist us in resolving this constructively,” said Dhlamini.
Naledi municipal manager Tshepo Bloom told Scopa that Eskom was at the top of its creditor list, alongside other large creditors including the South African Revenue Service, the office of the Auditor General, the Development Bank of South Africa and the South African Local Government Association.
“The Auditor General gave Naledi an unqualified audit, but said that the council was not a going concern. In my limited understanding of the accounting there is little to celebrate there, because if you get an unqualified audit and cannot deliver services, it doesn’t mean anything,” said Bloom.
Bloom told the committee that the money Naledi got for electricity was often used to pay salaries and to fund things like fire services, library services and running traffic by-law enforcement at a loss. He proposed that the provincial sphere take on the funding of these functions instead.