The Letsemeng Local Municipality instituted legal proceedings against Eskom on 25 February 2020 over R38,5 million debt it is owing the electricity company.
In a media statement, Eskom said the decision taken by the Local Municipality is unfortunate and concerning, it also said that it is a very costly process.
“It is unfortunate that on 25 February 2020 Letsemeng Local Municipality chose to institute legal proceedings against Eskom. The decision by the municipality is concerning in that it has decided to engage in a very costly legal litigation in the High Court instead of reducing it’s Eskom debt amounting to R38,5 million” said Eskom.
The Local Municipality had previously requested Eskom to suspend the decision to withhold the provision of electricity planned for 20 February to afford the Municipality an opportunity to pay R5 million on 26 February 2020 towards it’s overdue Eskom electricity debt.
Eskom had agreed to the request by the Municipality for it was supported by a letter of financial support by the Free State Provincial Treasury and postponed it’s decision to 26 February 2020.
Currently, Eskom’s desicion to withhold the electricity supply to Letsemeng Local Municipality has been further suspended to 06 March 2020 based on the ruling of the court on 25 February 2020.