Free State municipality assets seized by Eskom

Eskom has attached the Free State municipality assets in an attempt to recover R2.8-billion owed to them.

The Sheriff was at Maluti-A-Phofung’s offices on Wednesday to carry out a writ of execution and to attach their assets which included vehicles and office furniture.

IOL reported that the municipalities Media and Communications manager Kedibone Sentle explained the legal process began in 2014 when Eskom issued a notice to interrupt the supply and distribution of electricity to the municipality.

The matter was in and out of court on various occasions since 2014.  In December 2017 the court ordered the municipality to enter into a payment plan with Eskom however an agreement was never reached as Eskom demanded full payment.

The municipality has over 11 000 Eskom customers which amounts to a monthly revenue of around R22-million.

The municipality has experienced tampering of electricity meter boxes, illegal connections, vandalism to the infrastructure and sabotage which has lead to the debt amount.

The municipality are however in the process of strengthening their credit control measures in order to recover money from the communities for the services received.

Maluti-A-Phofung municipality was recently in the news when the chief financial officer and expenditure manager were arrested on charges of fraud and corruption totalling R4.6-million.