Ditsobotla signs deal with Eskom to tackle mounting debt

The Ditsobotla Local Municipality in the North West joins the list of municipalities that have signed a Distribution Agency Agreement with power utility Eskom. The municipality conceded that its mounting R1.7 billion debt to Eskom could be curbed by a structured repayment plan that allowed Eskom first access to electricity collections. National Cabinet Representative, Kopung Ralikontsane, who was placed at the municipality after it was put under administration, says it needed assistance running its affairs.

"Ditsobotla has not been paying. They don't have money to pay and service the debt and because they didn't service the debt, the debt was growing. That is the current situation.

Even now, we survive on equitable share. We are still working on other revenue enhancement mechanisms and strategies so that we don't depend entirely on equitable shares. Also, money that we were getting from this electricity.

We were actually stealing from Peter to pay Paul – stealing money from Eskom with the electricity that they've given us so that we can service our other responsibilities. The Lichtenburg based Ditsobotla Local Municipality has signed a memorandum of understandign with Eskom."