DELMAS – Relief is on the horizon for residents of Victor Khanye as Eskom is poised to alleviate the struggling municipality’s burden of over half a billion in debt. The municipality is among 28 municipalities across the country collectively owing the power utility a staggering R27 billion. These municipalities have been granted approval for the Eskom Municipal Debt Relief Support Programme. This signifies that Victor Khanye’s hefty R637 million debt to Eskom will be forgiven by the end of March. Seventy-two (72) municipalities from all over the country applied for Eskom debt relief. Finance Minister Enoch Godongwana announced during his 2024 Budget on February 21 that 70 of them were approved. Additionally, the minister announced a R2 billion conditional grant to Eskom over the medium term to fund the rollout of smart prepaid meters, with the municipalities approved for debt relief targeted as a first priority.
However, the municipality still faces challenges, with Rand Water now looming as another obstacle. The bulk water supply company has threatened to reduce the municipality’s water supply by 20%, with the possibility of escalating to 40%, if Victor Khanye fails to settle its R389 million debt. Nevertheless, Mayor Vusi Buda has assured residents that water supply will remain uninterrupted. “We are currently in discussions with Rand Water to negotiate a repayment plan,” he stated.
The municipality’s revenue collection has reportedly decreased from 80% to 65%. Buda attributed this drop to a loss of income experienced by many households. “Unemployment is widespread in Victor Khanye. The closure of mines has significantly exacerbated the issue, as many who have lost their jobs can no longer afford municipal services,” he explained.
Buda urged residents to settle their municipal accounts and encouraged unemployed customers to declare their status. “Those who are able to pay should continue to do so, while those facing financial hardship should come forward to register as indigents,” he emphasized.
Furthermore, discussions are underway with Chinese investors to bring much-needed investment to the municipality. “We have recently signed an agreement with the city of Jinzhou in China to establish industries in Victor Khanye,” Buda said, without disclosing many details, as the specifics of the relationship are yet to be shared.
