Disconnect services if municipalities do not pay, says NW finance MEC

01/05/2025News

The North West MEC for Finance said enforcement measures such as disconnecting electricity should be encouraged if a municipality does not pay service providers.

North West MEC for Finance Kenetswe Mosenogi

MEC Kenetswe Mosenogi addressed the Provincial Executive Representatives (PERs) deployed to distressed municipalities and emphasised the critical importance of implementing Financial Recovery Plans (FRPs) as guided by National Treasury.
Madibeng is one of the affected municipalities in North West.
“Although difficult, the disconnection of services may be a necessary step to meet the programme’s requirements. In the long run, this will benefit communities if a portion of the municipality’s debt is written off, thereby improving the municipality’s capacity to enhance revenue collection,” Mosenogi said.
In a strong stance on the Eskom debt relief programme, the MEC stressed the importance of full compliance by affected municipalities. She cautioned against any compromise on the terms of the programme and encouraged the enforcement of measures including service disconnections if necessary to ensure consumer accountability.
MEC Mosenogi reaffirmed that the Financial Recovery Plans must be implemented through their prescribed phases, which are Rescue (short-term cash flow management), Stabilisation (improving governance and financial controls), and Sustainability (ensuring long-term financial viability). She called on PERs to ensure municipalities move beyond the Rescue Phase and actively pursue the intended outcomes of their recovery plans as legislated.
“The restoration of the dignity of the North West Province depends on your commitment to assisting municipalities to implement the financial recovery plans,” urged MEC Mosenogi. “Your deployment is a clear indication that your expertise is not only recognised but needed. The government is counting on your ability to deliver,” she told representatives.