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                           PRESS STATEMENT

                                                                                             07/12/2016

Makana proposes a new payment plan

Makana municipality has an existing agreement of bulk supply of electricity with Eskom. Due to the unstable revenue collection, Makana municipality was unable to honour its initial payment plan by 5 November 2016. This has resulted on the municipality not being able to enjoy the benefits of interest being waived by Eskom as it was initially agreed that, upon honouring and settling the debt, Eskom will waive interest charged on the account. A letter of remedy of breach of agreement from Eskom was receive instead.

In accordance to the above, the municipality has since proposed a new payment plan with Eskom that will see the total amount of the account being paid off on the electricity bulk account by December 2020 unless the financial situation improves.

An amount of R14, 5 million has been paid last week to Eskom already, but the municipality has had no response yet from Eskom on this payment.

The municipality has since approached SALGA to assist in negotiating with Eskom on the new payment plan.

Another meeting with Eskom, SALGA and Makana municipality with regards to the payment plan is scheduled to take place soon.

For further details and enquiries please contact Communication Officer, Yoliswa Ramokolo @ 046 – 602 4403/16 Cell: 078 550 2707 or yramokolo@makana.gov.za