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About half the 62 defaulting municipalities that had made payment arrangements with Eskom have not complied with those arrangements‚ raising the danger of a rise in municipal debt‚ Eskom chief financial director Anoj Singh said Wednesday.
Municipal debt in March stood at R9bn-R10bn‚ and had been contained after a sharp escalation between March 2016 and September 2016‚ when the debt rose from R6bn to R9bn.
A further escalation to R12bn by end-March 2017 was predicted unless action was taken‚ which was why Eskom turned off the electricity of three or four municipalities.
Payment arrangements were made with the remaining defaulters.