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The Standing Committee on Local Government received a detailed briefing from the Western Cape Provincial Treasury on the state of Eskom debt and financial compliance at several hung and financially distressed municipalities, including Matzikama, Cederberg, Theewaterskloof, Kannaland, and Beaufort West. The committee has heard that much of the damage done to these municipalities has been as a direct result of unstable coalitions, which in turn has led to poor overall governance.

This follows a reply from Provincial Treasury that revealed that the combined outstanding Eskom debt for municipalities in the province amounts to R93.1 million, of which a part has already been written off for four municipalities (excluding Theewaterskloof). The presentation further revealed that another portion of this debt will be written off by the end of July 2025, subject to compliance with conditions under the Municipal Debt Relief Programme.

Theewaterskloof Municipality did not qualify for the programme, as its arrears began after the national cut-off date for the programme. While some municipalities are making progress, Kannaland Municipality has regressed and is no longer maintaining current Eskom payments, putting their relief eligibility at risk.

MPP Dave Bryant said: “The financial distress at these municipalities is caused by unstable coalitions and poor governance, which has compromised the recovery process. The DA has shown that where it is given an outright majority, it delivers far more effectively and consistently.
We call on residents to unite behind the Democratic Alliance to ensure we are able to govern with outright majorities, implement proper recovery plans, and ensure that service delivery happens efficiently and effectively.
We are further embarking on a series of oversight visits to these municipalities and have submitted parliamentary questions to push for intervention, accountability, and self-sustainability.”

As the DA in the Western Cape, we will continue to push for clean governance, financial responsibility, and uninterrupted service delivery for all residents.

Issued by MPP Dave Bryant - DA Western Cape Spokesperson on Local Government