3 days ago
Western Cape municipalities' debt to Eskom slowly improving, but Kannaland still a problem
Five municipalities in the Western Cape owe Eskom money. They are either run by coalitions or face political instability. As municipalities are slowly working to improve their debt, one municipality is struggling and a financial recovery plan is on its way.
Theewaterskloof Mayor Lincoln de Bruyn admitted before the Western Cape Legislature that it was a 'lack of political oversight' that led to his municipality owing Eskom R50-million.
The municipality was one of five whose debt to Eskom came under the spotlight of the Western Cape Legislature's local government oversight committee on Wednesday, 18 June 2025. Aside from Theewaterskloof, other municipalities that are in arrears include Matzikama, Cederberg, Beaufort West and Kannaland.
The five municipalities owe Eskom R93.1-million, part of which has been written off.
According to the Provincial Treasury, there are payment plans in place under a National Treasury debt relief scheme for Beaufort West, Cederberg, Kannaland and Matzikama. These debt relief schemes cover debt up to 31 March 2023.
But Theewaterskloof's debt arose after March 2023, which made it ineligible for debt relief.
Issues around municipal debt are not new. In an interview with Daily Maverick, Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa said it was time for municipalities to pay their debts, whether with Eskom or other utilities.
Nationally, municipalities cumulatively owed Eskom about R107,350,345,759.00 — more than R107.3-billion — by December 2024.
While the Western Cape municipalities account for a small fraction of what Eskom is owed, the power utility has warned that spiralling local government debt could threaten its financial viability.
Tuesday's briefing came after the DA's spokesperson in the legislature on local government (and also chairperson of the committee), Dave Bryant, said in May that all five municipalities that owed Eskom were 'governed by unstable coalitions'.
On Tuesday, De Bruyn said it was 'political instability' that stood as a reason for the municipality being in arrears with Eskom. Tweewaterskloof is a hung council and is led by a coalition of the Democratic Alliance (DA), Good and the Socialist Workers Revolutionary Party.
'Let me start at the top: from 2021 until November 2024, we are the coalition government, and since November, a new coalition government took over the reins in Theewaterskloof,' he said about the coalition.
As Daily Maverick reported previously, Theewaterskloof (which comprises the towns of Botrivier, Caledon and Greyton) had made headlines for its poor governance at mayoral levels, including a back and forth after the DA was ousted in September 2024, which led to the Good party expelling three of its party members.
'For seven months, we have tried to rectify what went wrong in the past. Let me start at the top, and I'm not using it as an excuse. But it is facts, and facts speak louder than words,' he said.
'There was a lack of political oversight,' he said, adding that the Municipal Public Accounts Committee was 'non-existent'. Since last November, the political leaders of the town had established a functioning committee.
'We are trying hard… We are trying our best,' said De Bryun in a bid to fix some of the problems in the municipality, including fixing its outstanding municipal debt. The municipality owes Eskom R54-million.
Western Cape municipalities in arrears with Eskom:
More trouble for Kannaland
During the briefing, another coalition-run municipality that also came under the spotlight was Kannaland.
The municipality, sitting at the door of the Little Karoo, has made headlines for the wrong reasons: its debt to Eskom in 2022, and of course, its mayor Jeffrey Donson, who was convicted of the rape of a teenager.
Currently, its council is run by a coalition of Donson's party, the Independent Civic Organisation of South Africa (Icosa) and its offshoot, the Karoo Independent Party.
The municipality had R14-million approved for a write-off by the National Treasury by March 2023. But now, the municipality is still in arrears with Eskom, owing R48-million by 30 April.
Finance MEC Deidré Baartman said Kannaland was soon due to adopt a financial recovery plan, which would be brought before council.
When asked by members why Kannaland had been unstable since 2017 and now, as a result, could not pay its debt, Baartman said: 'We are more than happy to do more comprehensive briefings on the different municipalities, but we also need to be honest with ourselves: in the Kannaland Municipality, the support of the Provincial Treasury and the National Treasury was not wanted.'
During the meeting Donson did not speak, although it was indicated that he would join the virtual platform.
Baartman said: 'We're working as a team so we can get our financial recovery plan over the table, because it's in everyone's best interest.'
During the briefing, representatives of the three other municipalities that owed Eskom money were also present. These include Matzikama, which owes R75-million.
New Mayor Monica Bottom represented the municipality. She was elected as mayor in a coalition government led by the ANC, Bottom's party, the Patriotic Alliance, Good and the EFF. Cederberg, run by a coalition of the ANC and Cederberg Eerste, was in arrears of R29.9-million. Beaufort West, run by the DA, owes Eskom R51-million. DM
