Cederberg Municipality says it has received a second R14.9 million Eskom debt relief write-off from National Treasury, as it works to clear historic arrears.
Image: File
Cederberg Municipality says it is moving closer to clearing an inherited R47 million Eskom debt after National Treasury confirmed a second debt relief write-off of almost R15 million earlier this month.
In a statement released earlier this month, the municipality announced that it had received official confirmation from the National Treasury of a second Eskom debt relief write-off amounting to R14.9 million, describing it as a significant step towards financial sustainability and growth.
According to the statement, the first debt relief write-off was approved on January 16, 2025, for the same amount of R14.9 million, bringing the total debt relief granted to the municipality to R29.9 million.
The latest development comes after Cederberg was previously listed among Western Cape municipalities struggling with Eskom arrears. In November 2024, IOL reported that Cederberg was among municipalities owing Eskom, with the municipality’s overdue debt listed at R41.77 million.
At the time, the Western Cape Government said Cederberg, Matzikama, Kannaland, and Beaufort West were approved for the Municipal Debt Relief Programme and would have their Eskom arrears written off if they adhered to the conditions of the programme over three years.
Cederberg Municipality said its commitment to complying with the conditions set out by Eskom and National Treasury over more than two years had enabled it to benefit from the debt relief process.
It is not immediately clear how much Cederberg Municipality still owes Eskom following the second write-off, with the statement only indicating that the municipality is working towards meeting the conditions for Eskom to write off the last R14 million.
Executive Mayor Azrial Scheepers said the write-off was the result of the municipality’s financial discipline and responsible governance.
"We are pleased to announce that our commitment to financial discipline and responsible governance has yielded tangible results," Scheepers said.
"This debt relief is a testament to the hard work and dedication of our municipal team and council. We remain committed to delivering quality services to our community and ensuring that Cederberg remains a place where people can live, work, and thrive."
Municipal Manager Gerrit Matthyse said the municipality had maintained stringent financial controls and credit control measures as part of the process.
"This achievement underscores our municipality's commitment to good governance and financial discipline," Matthyse said.
"We have maintained stringent controls and credit control measures, enabling us to provide further assistance to our indigent households. With the last two months of the third year of the Eskom debt write-off process remaining, we are working diligently towards meeting the conditions for Eskom to write off the last R14 million, effectively eliminating the previous council's R47 million debt."
Chief Financial Officer Jerome Booysen said improvements in reporting and governance had contributed to the municipality’s progress.
"It's a privilege to manage a competent finance team that serves the community. We are grateful for the strategic support we get from the council; it makes doing our job much easier. We will continue to comply to successfully complete the programme and gain approval for the third write-off," Booysen said.
The Western Cape Government previously said the Eskom debt relief programme required municipalities to meet strict conditions, including improving revenue collection and paying what they owe to suppliers, including Eskom.
It also said qualifying municipalities would be eligible to have the remaining portions of their Eskom debt written off over two further years, provided they continued to honour their commitments.
lilita.gcwabe@inl.co.za