The cash-strapped Ditsobotla Local Municipality has taken drastic measures to recover unpaid bills, cutting electricity to government departments, schools, businesses, and residents amid a staggering R1.4 billion debt owed to Eskom.
Mayor Molefe Morutse defended the move, stating that the municipality had exhausted all other options before resorting to disconnections. “Departments owe us R91 million, and despite numerous letters, they were unresponsive,” Morutse said. “As leaders, we must make unpopular decisions, but this one is yielding positive results.”
Residents Among Biggest Defaulters
The mayor revealed that residents owe nearly R3 billion in unpaid services, crippling the municipality’s ability to function. While acknowledging economic hardships, Morutse urged those without income to register for indigent support. “But those who can pay must settle their bills. Our people must learn that nothing is free,” he emphasized.
Municipal Wage Bill and Eskom Debt Relief
The municipality faces additional strain with a wage bill consuming 42% of its budget—well above the norm. However, Morutse expressed optimism about Eskom’s debt relief program, which includes the municipality. “We owe Eskom R1.4 billion, but we’re part of their debt relief plan,” he said. A new agreement will see Eskom assisting with infrastructure and revenue collection to settle the debt.
Power Partially Restored
Following negotiations, electricity has been largely restored after defaulters entered payment plans. The mayor hopes this will stabilize municipal finances, allowing salaries to be paid and services to resume.
As Ditsobotla grapples with financial recovery, the crisis highlights broader challenges in municipal accountability and service delivery across South Africa.