Emfuleni Local Municipality’s (ELM) bank accounts were attached, due to non-payment of its current electricity account.
Judge Neukircher of the Gauteng High Court, made a ruling on 18 October 2024, following Emfuleni’s application to the court to overrule this decision.
Eskom’s Daphne Mokwena, said “it is important to note that by the time the matter was heard on 18 October 2024, Eskom had already released all Emfuleni bank accounts and both parties had signed the Distribution Agency Agreement
(DAA) (as instructed by the Pretoria High Court order on 5 July 2023), thus rendering the “Part A” order moot.”
Emfuleni sought to set aside or suspend Eskom’s attachment of its bank accounts, arguing that the municipality is part of a National Treasury Debt Relief Programme.
Eskom said then the case was divided into two parts, with the recent judgment on “Part A” focusing solely on the interim relief pending the finalisation of “Part B.”
“The Court did not make any findings against Eskom regarding the unconstitutionality, unlawfulness, or invalidity of the attachment” said Mokwena.
These issues will be addressed in Part B of the case.
April Ntuli, Municipal Manager at eMfuleni, said the High Court decision, ordering the power utility to suspend the Writ of attachment of its bank accounts, is welcomed, since Eskom’s action was unconstitutional, unlawful and invalid from the start.
“The municipality supports the ruling that on account of the National Treasury Debt Relief Program ELM is participating in, Eskom was not entitled to attach municipal accounts as part of the critical rules of the program. The attachments of 5th September 2024 meant that the municipality could not pay employees, contractors, service providers, SARS, statutory benefits and deductions for the month of September” said Ntuli.
The two entities signed a Distribution Agency Agreement aimed at enhancing revenue collection and settling outstanding debt.