Eskom must write off R70 billion in municipal debt as part of government debt takeover plan

[Hanno Labuschagne]

Eskom must write off R70 billion in municipal debt as part of government debt takeover plan

National Treasury will demand that Eskom write off some R70 billion in outstanding municipal debt as part of the government taking over a part of the utility's debt, Rapport reports.

The publication reported that it had seen an official letter being circulated to municipalities explaining how the debt would be written off over three years.

 

[Dups!]

Bloody hell!

An official license to steal for the municipalities.

"Hey, they will write the debt off again."

Maybe the ANC realises that the incoming new order (government) will hold people accountable so they better clear their own of the burden.

 

[Paulsie]

Municipalities will have to cut off non-payers in order to qualify.
Cutting of the whole of Soweto one year before the BIG elections. Sure.

 

[upup]

Cutting off the voters. A better life for ..........

 

[StBlade]

What is the outstanding amount for Soweto? Or is it going to screw up the cANCer electioneering.

 

[rvZA]

Just don't pay. If they write it off once, they will do it again.

#ThankMeLater

 

[BBSA]

They creating a moral hazard here, setting us up for more trouble down the road.

 

[RonSwanson]

Lekker Sowetan ANC voters!

 

[Solver]

Insane increases for the law abiders / tax payers / societal contributors and freebies for the parasites/ freeloaders / voters. Minister of the electric says we need more money, anc proceeds to wipe off debt. Tell us it's an election soon without telling us it's an election soon. Ai

 

[rvZA]

Lekker Sowetan ANC voters!

We'll support them foreva! Viva!

 

[Bewlen]

Lol

 

[Fulcrum29]

I saw this thread earlier today, and I was like, okay, there is step one at writing off Eskom's debt. I said, step one, but, as alluded to by @RonSwanson this is voter buying. Don't be surprised to see them work this write-off into their election campaign.

 

[porchrat]

I saw this thread earlier today, and I was like, okay, there is step one at writing off Eskom's debt. I said, step one, but, as alluded to by @RonSwanson this is voter buying. Don't be surprised to see them work this write-off into their election campaign.

This is debt owed to them, not debt owed by them. Surely this negatively impacts their balance sheet and is the opposite of writing off Eskom's debt?

 

[Fulcrum29]

This is debt owed to them, not debt owed by them. Surely this negatively impacts their balance sheet and is the opposite of writing off Eskom's debt?

Correct, but it remains an uncollectable income.

 

[_TrXtR_]

This could go far to cover etolls. pass the buck and let sanral recover from them

 

[porchrat]

Correct, but it remains an uncollectable income.

That's likely true. Doesn't seem like a real answer unfortunately. Debt will just climb again.

 

[Hemi300c]

Until next time

Rinse and repeat

 

[TheChamp]

Lekker Sowetan ANC voters!

It says municipal debt right there in the heading, Soweto is not a municipality.

 

[ConfusedR]

It says municipal debt right there in the heading, Soweto is not a municipality.

Does not really matter. Soweto probably has the highest debt

 

[RonSwanson]

It says municipal debt right there in the heading, Soweto is not a municipality.

Do you even understand your own point that you are trying to make?