The Matlosana Local Municipality in Klerksdorp, North West is bankrupt after Eskom withdrew R89 million from its bank accounts for its failure to pay its R1.5 billion debt to the power utility, according to the Mayor James Tsolela.
The municipality and Eskom have been at loggerheads since 2020, and numerous judgements have been handed down over the unpaid debt, the latest being in March, but the municipality has been unsuccessful in appealing the court orders.
Speaking to the media, Tsolela confirmed that Eskom has finally taken over the monies that were in the municipality’s bank accounts but he assured the residents that he was seeking help from both the national and provincial governments.
“We are sitting with empty accounts. But we want to assure our people that we still guarantee there will still be service delivery. We are trying our level best to avoid the collapse. Our constitutional responsibility as the municipality is to render services to our people,” he said.
Eskom’s Head of Communications Zodwa Dlamini said they will respond to media enquiries after two days.
