THANK YOU TLM!
Thabazimbi – Since December 2016 up to July 2017, the Thabazimbi Local Municipality (TLM) paid R 32 million towards the historic debt on its Eskom account. However, due to the fact that services are not being paid for by many consumers and the high interest that was added by Eskom on the arrears account, the TLM defaulted by millions.
On 4 August 2017, the TLM received a notice from Eskom indicating the intention to limit the bulk electricity supply, provided that all stakeholders will be given the opportunity until 4 September 2017 to give input in this regard in order for Eskom to decide whether or not to commence with limiting the bulk power supply.
Unfortunately, Eskom decided to start with power limitations on 21 September 2017. The TLM paid R 1 million over to Eskom and the limitations were temporarily suspended in order for the TLM to acquire the R 36 million, as requested by Eskom to keep the power on.
During the next two weeks, the TLM engaged with numerous stakeholders in order to obtain the required amount, without any success. Eskom started once again to limit electricity supply on 5 October for the next 7 weeks. During this time continuous negotiations were conducted on a daily basis to find a workable, legal and affordable solution to try and resolve the crisis.
It needs to be pointed out that the TLM was, during that time, in a position to start the necessary processes to fill the vital vacant posts of the municipal manager and all other senior managers. Some of these positions have been vacant for several years. Unfortunately, this also was met with obstructions during which an unsuccessful candidate took the TLM to court and demanded to be appointed. The case was struck from the urgent roll, with cost.
Furthermore, on two occasions the ANC took the Unity Government and TLM to court and, in both cases, the cases were struck from the urgent roll, with costs. Mr André van der Walt of JF van Graan and Van der Wateren Attorneys, as well as senior advocate Linde Putter, assisted the municipality in all these cases.
These legal battles hindered progress within the municipality, but in all cases the court ruled in favour of the municipality, with costs. Numerous other court cases that were made against the municipality due to the mismanagement caused by the previous administration were either settled or contested in court. The TLM’s assets are constantly repossessed and re-planning has to be done to manage the abovementioned obstacles.
Fortunately, the municipality succeeded in appointing the municipal manager, manager corporate services, chief financial officer and manager planning and economic development. Although the MEC of CoGHSTA didn’t give concurrence, the TLM obtained a thorough legal opinion and informed the MEC and the Minister of CoGTA that appointments will continue.
Eskom, in the meantime, added an additional two hours to the daily power limitations, but after the TLM made a deposit of R 500 000 and assured Eskom that a solution would be reached soon, they reverted back to the original time schedule, as was initially advertised.
It needs to be mentioned that Mr KJ Matlou (divisional head income) and Mr TG Ramagaga (municipal manager) were paramount during the negotiations with Eskom and stakeholders. The TLM advised their legal counsel to get their legal documents in place in order to take Eskom to the Constitutional Court. To save time the TLM got the legal advice to apply to intervene as amicus curiae (friends of the court) in the already pending court case made by the Chambers of Commerce and Tourism of Sabie, Lydenburg and Graskop. Waterberg District Municipality was also requested to provide financial assistance.
Dr LH Joubert, the Speaker of the TLM, played a fundamental part in processes which resulted in a positive outcome.
Mr Matlou, Mr Ramagaga and Eskom had an intense negotiation session at the provincial headquarters of Eskom in Polokwane on Thursday 16 November 2017, during which Eskom and the TLM reached an agreement. The electrical interruptions were suspended on Friday afternoon 17 November with the understanding that, amongst others, they would not go on with the Constitutional Court case and an amount of R 11 million be paid by Tuesday 21 November. The municipality has informed the Waterberg District Municipality to pay over Thabazimbi Local Municipality’s VAT money directly to Eskom.
The continuous communication and determination of the municipality to solve this crisis has paid off. The TLM will enter into a reachable payment plan for the rest of the historic debt of R 225 million. This will be paid over the course of several years until 2025 by using the municipality’s Equitable Shares and also direct electrical sales from the PCMA smart prepaid meters.
A complete report regarding the Eskom crisis was submitted to the Executive Committee of the Thabazimbi Local Municipality on 22 November 2017 and will serve before a special council meeting next week.
The Thabazimbi Local Municipality wishes to thank every resident for being patient during this crisis.
Issued by the Office of the Speaker