Nama Khoi Municipality achieves R70 million Eskom debt write-off

IN A SIGNIFICANT financial breakthrough, the Nama Khoi coalition municipality has successfully secured a debt write-off of nearly R70 million owed to Eskom. This achievement represents a third of its total debt to the power utility.

The Democratic Alliance (DA) in the Northern Cape has praised the efforts of DA mayor Rodney Kritzinger, who, alongside the Namakwa Civic Movement and the entire Nama Khoi administration, played a pivotal role in securing this financial relief. The party stated that this collaborative approach has been instrumental in addressing the municipality’s legacy debt, a challenge that has long hampered its financial stability.

Nama Khoi entered Eskom’s debt write-off programme in 2023 as part of a broader strategy to address its outstanding liabilities, which exceeded R209 million. The municipality also inherited significant water infrastructure challenges due to years of neglected maintenance under the previous ANC-led local government, as well as additional debt owed to the Vaal Central Water Board.

Despite these hurdles, Nama Khoi has demonstrated sound fiscal discipline, achieving an 86% compliance rate within the Eskom debt-relief programme. This performance underscores the coalition’s commitment to meeting the stringent conditions set by Eskom, ensuring financial sustainability while prioritising service delivery improvements.

The DA has expressed confidence that the coalition municipality will continue to honour its agreement with Eskom. By maintaining compliance, Nama Khoi stands to have the remaining two-thirds of its Eskom debt written off over the next two years. This not only alleviates financial pressure but also allows the municipality to redirect funds toward critical infrastructure and service improvements.

This achievement is particularly noteworthy given that many Northern Cape municipalities participating in the debt write-off programme have struggled to comply, with some facing termination from the initiative. Nama Khoi’s success sets a benchmark for good governance and responsible financial management in the province.

While challenges remain, the coalition government said it is steadfast in its efforts to enhance service delivery and foster sustainable development. As the DA and the Namakwa Civic Movement continue to lead Nama Khoi, they remain committed to protecting the municipality from mismanagement and ensuring that its progress is not undermined by past governance failures.

This debt relief marks a turning point for Nama Khoi, providing much-needed fiscal space to strengthen local governance and improve the quality of life for residents.