In 2023 the National Treasury granted approval to five municipalities in Gauteng to participate in the Eskom Debt Relief Programme. These municipalities are Emfuleni, Lesedi, Mogale City, Rand West City and the Merafong City.
The Municipal Debt Relief is for a period of 36 months only and is a leverage on government’s bigger proposal of a debt relief package for Eskom. All the municipalities’ 36 months will end in 2027. There
are 14 conditions set out in MFMA Circular 124 which these municipalities should comply with monthly to qualify for the write-off.
These conditions are essentially aimed at restoring a set of basic minimum financial management best practices in municipalities owing Eskom and change the municipal culture of not paying bulk suppliers and a municipal and Eskom culture to not collect revenue.
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