The City of Tshwane has reached a significant milestone in its journey to financial recovery and stability by clinching a deal with Eskom to settle its R6.67 billion historical debt within five years.
This was announced on Monday by Mayor Dr Nasiphi Moya during a media briefing at Tshwane House, where she said the two parties' agreement was formalised as a court order on November 26.
According to a structured repayment plan, the city will make its first payment of R400 million in December 2024 and has already paid R425 million in arrears for October 2024.
“A critical condition of this agreement is the timely payment of current accounts within 30 days of billing,” Moya said.
She said the settlement marks a turning point, ending years of costly litigation and redirecting the city's focus toward improving service delivery and enhancing revenue collection systems.
In other developments, the city appeared before the Labour Court to review decisions related to wage increases.
“On 21 and 22 November 2024 the City appeared before the Labour Court to review decisions by the panellist dismissing its applications for exemption from the 3.5% and 5.4% wage increases for the first and third years of the agreement, respectively,” Moya said.
She said the City believed both decisions overlooked its financial constraints and broader implications for service delivery.
“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 said.
Judgment was reserved in both matters.
Moya said the city remains open to engaging with labour unions and other stakeholders to explore sustainable solutions.
Regarding the project to provide drinkable water to Hammanskraal residents, she reiterated that ensuring clean water remains a top priority.
The city, she said, has made progress with the commissioning of the Magalies Water Package Plant and has written off R600 million in water-related debt to relieve residents of the financial burden.
Lastly, the city has been working on registering spaza shops, with over 1,154 shops registered so far, including locals and foreign nationals.
Moya emphasised the importance of separating the registration and licensing processes to ensure compliance with the city's bylaws.
Since November 25, 2024, the new administration has inspected over 400 spaza shops, issuing fines and shutting down non-compliant operations.
The inspections, Moya said, followed the activation of the Disaster Operations Centre to coordinate a multi-sectoral response.
Pretoria News