MUSINA, Limpopo — The National Treasury has withheld approximately R96 million in equitable share funding from the Musina Local Municipality following its failure to settle a R52 million debt owed to Eskom within the mandated 30-day period.
During a recent broadcast interview, Musina Mayor Godfrey Mawela confirmed the financial block, taking a moment to clarify his title after being mistakenly introduced as the municipal manager. He explained that the municipality contravened Section 65(2) of the Municipal Finance Management Act (MFMA), which strictly requires municipalities to pay their creditors within 30 days. Because the local authority was unable to settle its Eskom debt within this timeframe, the national treasury intervened to withhold the equitable share meant for the region’s residents.
According to Mawela, the municipality currently owes the national power utility R52 million. To resolve the compliance issue, the local authority has entered into a repayment arrangement with Eskom. The mayor stated that the municipality has since informed the National Treasury of this agreement and is requesting the immediate release of the R96 million so they can clear the Eskom arrears by the second week of July.
The financial strain on the municipality is evident, with Mawela describing Musina as a financially struggling local authority that relies heavily on grants and equitable share allocations to address service delivery backlogs. When questioned about the root cause of the Eskom debt—whether it stems from poor revenue collection or financial mismanagement—the mayor highlighted that the municipality currently maintains a 90% collection rate. However, he noted that illegal electricity connections are causing significant revenue leakage, prompting plans for a roundtable meeting to address the unauthorized usage and find a sustainable resolution.
Furthermore, Mawela pointed out that the municipality’s relationship with Eskom involves complex purchasing and billing structures. He emphasized that the local authority does not profit from the electricity it purchases for its residents, arguing that the ongoing financial friction requires intervention and assistance from both the provincial and national government to properly resolve the billing and supply issues.
