Emfuleni Reaches Agreement with Eskom to Resolve Financial ...
The Emfuleni Local Municipality has successfully reached an agreement with Eskom to address its outstanding R8 billion debt, ensuring that municipal operations and services can resume normally. Following weeks of unrest and delayed salaries, the municipality confirmed that all employees have finally received their September wages, marking a significant step towards resolving the financial impasse.
Municipal spokesperson Makhosonke Sangweni confirmed that the municipality and Eskom had come to a “distribution agreement” that will allow Emfuleni to continue operating while paying off its historical debt. According to this agreement, 10% of the revenue collected from electricity payments will go directly to Eskom, while the remaining 90% will be used to maintain the municipality’s operations .
The agreement comes after Eskom attached Emfuleni’s bank accounts in September 2024, crippling the municipality’s ability to pay its staff and deliver essential services. This resulted in widespread protests by municipal workers, supported by the South African Municipal Workers Union (SAMWU), who demanded immediate resolution and payment of salaries .
Makhosonke Sangweni extended apologies to both residents and employees for the disruption in services and delays in salary payments, praising the interventions of national leaders, including the Ministers of Finance, Electricity, and Energy, as well as the Premier of Gauteng, Panyaza Lesufi, who facilitated negotiations with Eskom. Sangweni assured the public that the municipality is working hard to improve revenue collection and eliminate illegal electricity connections to prevent future financial crises .
With operations resuming, Emfuleni is now focused on increasing community engagement to encourage residents and businesses to pay for their services and register for assistance if needed. The municipality hopes that with Eskom managing electricity production, it will be able to stabilize its finances and restore Emfuleni as a “municipality of choice” .
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