Free State Municipalities
By Thobeka Makume
Saki Mokoena, the Free State MEC for Cooperative Governance and Traditional Affairs, has vowed to spearhead urgent financial interventions to prevent multiple municipalities in the province from plunging into darkness. Mokoena’s efforts come as Eskom threatens to disconnect several local municipalities due to outstanding debts totaling billions of rands. With the Free State’s municipalities collectively owing Eskom R26 billion, urgent measures are being discussed to resolve the crisis before essential services and businesses suffer devastating consequences.
The mounting debt crisis has placed immense pressure on the provincial government, as four municipalities—Nala, Moqhaka, Masilonyana, and Ngwathe—have been given just eight weeks to either settle their arrears or face disconnection. This could leave thousands of households, businesses, and institutions without electricity, further deepening the economic and social challenges in the province.
The Scale of the Crisis: R26 Billion Owed to Eskom
Electricity Minister Dr Kgosientsho Ramokgopa has acknowledged the urgency of the situation and is working with provincial leadership to address the issue. According to Ramokgopa, the financial distress extends beyond just Free State municipalities, as South African municipalities collectively owe Eskom over R100 billion. However, the situation in the Free State has been particularly concerning due to its municipalities’ inability to settle their dues despite multiple interventions.
“Collectively, municipalities owe Eskom approximately R100 billion. But Eskom is also owed over R380 billion by various consumers,” said Ramokgopa. “This is an existential problem for both Eskom and municipalities, so we need to work together with provinces and municipalities to resolve this challenge. Specifically, Free State municipalities collectively owe Eskom R26 billion.”
Municipalities at Risk of Blackouts
Among the municipalities facing imminent power disconnections, Ngwathe stands out as one of the most indebted, with a staggering R2.3 billion debt. Residents in Parys, Heilbron, Phiritona, Edenville, Vredefort, and Koppies face the possibility of a dark Easter weekend if the crisis is not resolved in time.
Similarly, Masilonyana municipality, covering towns such as Brandfort, Theunissen, Verkeerdevlei, and Winburg, has also been issued a notice by Eskom. Other affected municipalities include Nala (owing R936 million) and Moqhaka (owing R1.5 billion).
Eskom has made it clear that unless immediate solutions are found, the power utility will begin reducing, interrupting, or terminating electricity supply from 17 April.
“Eskom hereby notifies all stakeholders and residents of the municipalities whose rights are likely to be materially and adversely affected of its intention to reduce, interrupt, or terminate the supply of electricity to specific areas within the municipality with effect from 17 April,” the utility said in its official statement.
Decades of Financial Mismanagement
The financial challenges facing these municipalities are not new. In some cases, such as Ngwathe, issues with non-payment date back as far as 2009. Despite Eskom’s ongoing scrutiny since 2022, little progress has been made in settling its debts. While the municipality’s monthly Eskom bills range between R30 million and R57 million, it has only managed to pay a total of R49 million over the past 14 months.
Moqhaka municipality, whose R1.5 billion debt began accumulating in 2016, has also struggled. Between December 2023 and May 2024, the municipality made no payments to Eskom, only recently resuming with irregular payments ranging between R5 million and R10 million.
In the case of Nala Municipality, there have been no payments to Eskom since September 2024, with only R19 million paid since December 2023, despite invoices totaling R204 million. Masilonyana has fared even worse, only paying R2.3 million since December 2023 and going nine consecutive months in 2024 without making a single payment.
Final Deadline and Community Involvement
With Eskom now reaching the limits of its patience, affected municipalities have been given until 3 April 2025 to present viable financial plans. Community members, businesses, and stakeholders have until 13 March to submit written representations and comments before Eskom makes its final decision.
“Eskom appreciates the hardships the communities and the economy will suffer should it exercise its statutory powers to disconnect the municipalities,” the power utility noted. “However, there are no other meaningful options available to stop the debt from growing and to collect for current electricity consumption.”
Failed Debt Relief Measures and Provincial Government Response
The Free State provincial government has acknowledged the crisis, but opposition parties argue that warning signs were ignored for years.
Armand Cloete, Chairperson of the Portfolio Committee on Cooperative Governance in the Free State legislature, pointed out that all four municipalities applied for Eskom’s debt relief programme but failed to meet its conditions.
“In an MFMA section 71(7) report tabled in August 2024, it was evident that the municipalities failed to achieve 50% compliance with the debt relief programme’s conditions,” Cloete stated. “Under the ANC, the state owes itself billions of rands. In the Free State, residents are being held hostage due to the intergovernmental debt crisis created by the ANC.”
Saki Mokoena’s Proposed Solutions
MEC Saki Mokoena is leading efforts to prevent Eskom’s planned disconnections by introducing financial restructuring measures and pushing for government intervention.
In an interview, Mokoena outlined the key challenges facing municipalities and the urgent interventions required:
1. Fixing the Billing System
Municipalities are failing to collect revenue efficiently due to outdated billing systems. “Municipalities are struggling with billing systems, which affects their revenue collection. As a result, they default on their current accounts with Eskom,” Mokoena explained.
2. Refinancing Revenue from Electricity Payments
He proposed working with financial institutions to restructure municipal debts and ensure proper management of electricity revenue.
3. Rolling Out Smart Meters
Mokoena emphasised the need for smart meter installations to prevent electricity theft and ensure accurate billing.
“The installation of smart meters is already underway in areas like Maluti-a-Phofung, where bulk users have seen improved payment compliance,” he noted.
4. Ensuring Government Departments Pay Their Debts
Several government departments owe municipalities money for electricity usage. Mokoena has committed to enforcing a payment plan between the provincial government and affected municipalities.
Eskom’s Role and Future Prospects
Beyond short-term interventions, Mokoena has stressed the need for Eskom to take a more active role in assisting municipalities rather than simply issuing disconnection threats. He urged the power utility to refurbish ageing infrastructure and intensify network maintenance to reduce load losses caused by transformer failures.
Mokoena remains optimistic that if all stakeholders—including the national government, provincial leadership, municipalities, and Eskom—work together, a sustainable resolution can be found.
“We are committed to ensuring that municipalities do not lose their electricity supply. We are working tirelessly to balance financial sustainability and service delivery,” Mokoena said.
🔴 Central News Special Edition | Issue 94 🔴 Download the Latest Print and E-Edition | Headline: “I am a proud International criminal,
Malema Fires back at Musk and Trump”
Download Here:
Direct PDF Link:
https://centralnews.co.za/wp-content/uploads/2025/02/Central-News-Issue-094.pdf
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube