Eskom and 139 farms: Matjhabeng should have sold the land long ago already

FF Plus

Eskom and 139 farms: Matjhabeng should have sold the land long ago already
Eskom and 139 farms: Matjhabeng should have sold the land long ago already

While the ANC and EFF are frequently blaming commercial farmers for the land issue in South Africa, it has become evident that the government owns much land which is neither being used for housing nor ensuring food security.

The agreement entered into by the Matjhabeng Local Municipality and Eskom, according to which 139 farms will be put up as collateral for outstanding debt, proves that the ANC is unable to effectively address the land issue as well as government debt.

Eskom will take over the title deeds of the farms until Matjhabeng’s outstanding debt of R3,4 billion has been paid off.

The FF Plus is of the opinion that the Municipality should have sold the unused land a long time ago and used the money to pay its outstanding debt to, among others, Eskom.

It is senseless for a Municipality to hold onto unused assets while its debt to creditors is increasing excessively and unsustainably.

Although Eskom must ensure that municipalities pay their outstanding debt, the FF Plus is skeptical about whether this type of agreement will necessarily solve the Eskom-debt-problem. In effect, the government, through municipalities, owes itself money.

It makes absolutely no sense to transfer government assets between levels and entities in an attempt to settle the debt. At present, the government account’s debt is being transferred to and from and as a result, the assets cannot be used for the benefit of the people.

Farms should be used for private purposes, such as housing and commercial agriculture, so as to effectively meet the demand for housing and ensure food security.

The agreement between Matjhabeng and Eskom proves that the ANC is the main cause of the tension concerning land in South Africa and that the ruling party does not know how to solve the problem of government debt.

Read the original article in Afrikaans by Armand Cloete on FF Plus

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