Municipality settles Eskom debt with the aid of the financial recovery plan

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The settlement of Eskom’s arrear amount of R 54 Million since last year is according to the Executive Mayor, Cllr. Colan Sylvester, an indication that the Municipal Financial Recovery Plan is yielding positive results.

“We can assure our citizens and stakeholders that the terms of the agreement in respect of the Eskom debt was met in full, and 24 instalments paid on the Eskom arrangement,” said Mayor Sylvester. “The municipality is now only awaiting the reversal of the interest charges on the account as agreed upon with Eskom which was subject to the arrangement being honoured.”

“Eskom had, at some stage, threatened to switch off the town’s lights after the previous administration failed to pay Eskom. This, we view as one of the major achievements since that current administration took over the control of the Municipality last year August. The settlement of this account can be attributed to the meticulous implementation of the financial recovery plan that is guiding the Municipality towards its financial freedom,” Sylvester added.

The Financial Recovery Plan is aimed at securing the Oudtshoorn Municipality’s ability to meet its financial obligations and to provide basic services to its community. The Financial Recovery Plan was approved and implemented as direct result of the Provincial Intervention in terms of Section 137 of the Municipal Finance Management Act 156 of 2003. The plan requires that regular report back be given by the administration as to what progress has been made with the implementation.

The latest report was submitted to Council on 26 October 2017 as was accepted by Council. Submitting the report before Council, the Municipal Chief Financial Officer, Mr. Felix Lötter, stated that various applications have been made for funding to sustain the implementation of the plan. “Additional funding requests have been submitted to the Western Cape Provincial Government for financial assistance to execute the meter audit and meter replacement program, we are awaiting feedback in this regard”.

The financial recovery plan consists of the following 10 programs:

Budgeting and Expenditure

Revenue Management

Customer Care

Cash Management

Financial Controls

Asset Management

Supply Chain Management

Institutional Stabilization

Accounting and Data Management

Liability Management

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