SA Parliament – Eskom

Parliament, Tuesday, 17 September 2019 – The Northern Cape permanent delegates to the National Council of Provinces (NCOP) were shocked to learn that the province’s municipalities had the highest vacancy rate in the country, their irregular expenditure had increased to R624 million while their debt to Eskom stands at R1.3 billion.

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As of July 2019, the Northern Cape’s bulk municipal debt to Eskom escalated from R192 million in 2015, to R1,3 billion in 2019 – which is an escalation of about 577% in four years. Prior to 2011 there was no municipal debt but currently four municipalities (Kai Garib, Gamagara, Siyancuma and Tsantsabane) owe Eskom R639 million for bulk electricity supply.

In his recent report, the Auditor-General, Mr Kimi Makwetu, flagged the lack of accountability as the major cause for poor local government audit results, with this year’s results showing an overall decline.

In the Northern Cape, irregular expenditure remains high, with the annual irregular expenditure having increased from R349 million in 2016, to R624 million currently. This figure is incomplete as 20 of the 31 municipalities (77%) were either qualified on incomplete disclosures or are still investigating the full extent of the irregular expenditures disclosed.

The NCOP delegates, accompanied by their provincial legislature counterparts, are back in the Northern Cape this week to conduct oversight as part of the first Provincial Week of the sixth democratic Parliament, under the theme: “Building sustainable, responsive and people-centred municipalities”.

NCOP Northern Cape Provincial Whip, Anele Gxoyiya, said following a visit to the 11 municipalities with adverse findings, they will compile a report to be tabled in the NCOP for further intervention “in a quest to improve the situation”.

“We are of the firm view that there is a need to eradicate unauthorised and irregular expenditure, as well as improve the levels of accountability in local government. All municipalities have a responsibility to ensure that there is consequence management for poor performance in the interest of improved service delivery,” he said.

Northern Cape Premier, Mr Zamani Saul, said the province is already considering various proposals, which include creating a single structure that will coordinate all monitoring in order to bolster its monitoring mechanism over the municipalities. “These include using the Premier’s inter-governmental structure to monitor the municipalities, provide a platform for municipal managers to report on progress, capacitate the districts and use them as coordination hubs,” he said.

ISSUED BY THE PARLIAMENTARY COMMUNICATIONS SERVICES ON BEHALF OF THE NORTHERN CAPE PROVINCIAL WHIP TO THE NATIONAL COUNCIL OF PROVINCES, MR ANELE GXOYIYA.

https://www.parliament.gov.za/press-releases/northern-cape-municipalitys-irregular-expenditure-and-debt-eskom-shock-ncop-delegates

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The Department of Energy is mandated to ensure the secure and sustainable provision of energy, in support of socioeconomic development. It aims to achieve this by developing an integrated energy plan for the entire energy sector and regulating energy industries, and promoting investment in accordance with the integrated resource plan for electricity.
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Times reported during December 2018, about Eskom’s bad debt, mismanagement and failing plants, the troubled power utility has seen its fair share of blows this year, leading to questions about the sustainability of the state-owned entity.    The total debt for Eskom climbed by 14% to R419bn in the past six months (until the end of September). According to Business Day, the power utility’s service-cost debt doubled to R45bn in a year.   Despite only generating R26bn from operations, Eskom’s profit also dropped from R6.3bn to R671m in 2017. The power utility’s primary energy costs increased by 12% to R46bn and employee-benefit expense grew by 12% to R16.9bn.   And the salaries are sky high.
Eskom loans – 2008 – 2017 – 2018

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Eskom het vanmore aangekondig dat beurtkrag vandag toegepas sal word van 09:00 tot 23:00. Eskom se woordvoerder het gesê dat n verklaring later uitgereik sal word om die redes vir die beurtkrag te verduidelik.
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Public Entity Law and Legal Definition. “A public entity is defined as follows: (A) any State or local government; (B) any department, agency, special purpose district, or other instrumentality of a State or States or local government…..
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3 gedagtes oor “SA Parliament – Eskom”

  1. […] Parliament, Tuesday, 17 September 2019 – The Northern Cape permanent delegates to the National Council of Provinces (NCOP) were shocked to learn that the province’s municipalities had the highest vacancy rate in the country, their irregular expenditure had increased to R624 million while their debt to Eskom stands at R1.3 billion.SA Parliament – Eskom […]

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  2. […] Parliament, Tuesday, 17 September 2019 – The Northern Cape permanent delegates to the National Council of Provinces (NCOP) were shocked to learn that the province’s municipalities had the highest vacancy rate in the country, their irregular expenditure had increased to R624 million while their debt to Eskom stands at R1.3 billion.SA Parliament – Eskom […]

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  3. […] Parliament, Tuesday, 17 September 2019 – The Northern Cape permanent delegates to the National Council of Provinces (NCOP) were shocked to learn that the province’s municipalities had the highest vacancy rate in the country, their irregular expenditure had increased to R624 million while their debt to Eskom stands at R1.3 billion. SA Parliament – Eskom […]

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