Makana municipality in contempt as Eskom debt balloons

Makana municipality in the Eastern Cape has been found in contempt of court for failing to meet its 2019 court-ordered payments to reduce its huge arrear debt to Eskom.

In June 2019, the municipality agreed to a payment agreement in terms of which it would keep up with its current payments to Eskom while steadily, over two years, putting a dent in its R44m arrears.

The agreement included paying R7m in six instalments between November 2019 and March 2022. The agreement was made an order of court.

Former Makana mayor Mzukisi Mpahlwa reported that by August 2021, the Eskom arrear debt had been reduced to R15m. But Mpahlwa was replaced in November 2021 by current incumbent Yandiswa Vara.

At about the same time, former CFO Gerard Goliath also left the municipality.

According to the Grahamstown Business Forum (GBF), it was at this time that the municipality stopped making its court ordered arrear payments to Eskom.

By March, the arrears had once again ballooned to over R40m with interest. In March, the GBF resorted back to the Makhanda High Court asking it to find the municipality in contempt.

Judge Justin Laing found the municipality was in contempt of the 2019 order and ordered municipal manager Pumelelo Kate to report to the court every second month providing evidence that the municipality was meeting its payment obligations to Eskom.