Reducing salaries and overtime helps municipality pay Eskom debt | Citypress

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Reducing salaries and overtime helps municipality pay Eskom debt An Inkatha Freedom Party-led municipality has made a final payment to settle its R60 million debt to power utility, Eskom, while many councils across the country are still deep in debt.

The AbaQulusi Local Municipality in Vryheid, KwaZulu-Natal, paid the last instalment of R8 million to Eskom in December, following a struggle since 2018 to honour payment arrangements.

• reducing the salary bill by appointing officials only in critical positions and using the money for other vacant positions to pay the Eskom bill; “It took a lot of commitment and perseverance, as well as strict monitoring, as we were guided by the leadership of the IFP through all these repayment strategies, monitoring progress and making sure that we met the commitments,” Maphisa said.This may be considered a huge achievement, as 239 municipalities in the country owed Eskom about R44 billion by the end of June this year. This amount included R6.7 billion in interest and R4.8 billion for VAT.

 

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