In a move marking a turning point for the City of Tshwane, a R6.67 billion debt settlement has been reached with Eskom. This agreement, formalised as a court order on November 26, paves the way for the city to resolve its historical debt over the next five years. Mayor Dr Nasiphi Moya announced the development during a media briefing at Tshwane House on Monday, highlighting its significance for the city’s financial stability.
The first payment of R400 million is due in December 2024, and Tshwane has already paid R425 million in arrears for October 2024. The structured repayment plan requires strict adherence to timely payments. “A critical condition of this agreement is the timely payment of current accounts within 30 days of billing,” said Moya. She noted that the settlement ends years of costly legal battles and shifts focus toward improved service delivery and revenue collection.
Labour Court Challenges on Wage Increases
The City of Tshwane also appeared before the Labour Court on November 21 and 22 to review wage increase decisions. Moya stated that the city sought exemption from 3.5% and 5.4% wage increases due to financial constraints.
“For the 3.5% wage increase, we seek a fresh evaluation by a new panellist. For the 5.4% increase, we have asked the Labour Court to substitute the panellist’s decision, considering the available evidence,” she explained. Judgment on both matters remains reserved, with the city committed to engaging labour unions for sustainable solutions.
Clean Water for Hammanskraal: Progress and Debt Relief
Providing clean drinking water to Hammanskraal remains a top priority. Moya reported progress with the commissioning of the Magalies Water Package Plant, which will significantly improve water access. Additionally, the city has written off R600 million in water-related debt to ease the financial burden on residents.
Spaza Shop Registration and Compliance
Efforts to regulate spaza shops are ongoing, with over 1,154 shops registered to date. These include businesses run by both locals and foreign nationals. Moya emphasised the distinction between registration and licensing processes, crucial for ensuring adherence to city bylaws.
Since November 25, 2024, the new administration has inspected more than 400 spaza shops. Non-compliant operations faced fines and closures, part of a coordinated response through the Disaster Operations Centre.
Conclusion
The debt settlement with Eskom signals a fresh start for Tshwane, positioning the city for enhanced financial health and service delivery. By tackling issues such as labour disputes, water access, and business compliance, the city is demonstrating a commitment to long-term sustainability and growth.
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