Eskom files leave to appeal ruling favouring Maluti-A-Phofung Local Municipality

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Eskom has filed leave to appeal the Maluti A Phofung high court judgment, delivered on Friday.
The Free State Division of the High Court ruled in favour of the Maluti-A-Phofung Local Municipality, ordering that the attachment of the bank account of the Municipality be immediately uplifted.

Maluti-A-Phofung owes Eskom more than R5 billion.

It is the first municipality in the country to have its bank account attached for failure to pay.

Water and electricity crisis in Maluti A Phofung:  

Eskom has in the past attached movable properties and disconnected electricity to owing municipalities.

Eskom spokesperson, Sikonathi Mantshantsha, says the power utility has however filed an application for leave to appeal the judgment.

“The bank account was attached on the 21 July 2020 in order to recover some of the R5.4-billion owed by the Municipality for the non payment of the electricity. Eskom will pursue it in the Supreme court of appeal if successful with the appeal. And this is all being done to recover the debt that is owed by the municipality which continues to grow in the absence of a payment arrangement by the municipality.”