Lesufi wants ESKOM debt scrapped, while Gauteng will pick up 30% of SANRAL’s e-toll debt

Nokwanda Dlangamandla | kzn@radioislam.org.za
1 min read | 11:00

Dr Lumkile Mondi
Photo Credit: mg.co.za

In his mini-budget, Finance Minister Enoch Godongwana stated that the national government would cover 70% of SANRAL’s e-toll debt, but the province would be liable for the other 30%, raising questions about Gauteng’s financial destiny.

Following a widespread civil disobedience campaign, the e-toll issue cost the ANC votes in Gauteng as the public criticised them and said they weren’t adequately consulted. According to Premier Panyaza Lesufi, the provincial administration wants to cancel Soweto’s over R5 billion debt to Eskom. He is requesting debt forgiveness for hostels, slum areas, and townships.

ESKOM, however, eliminated roughly R8 billion in past-due debt for unpaid electricity bills in Soweto in 2020.

One of the biggest obstacles to ESKOM’s balance sheet is municipal debt. Dr Lumkile Mondi, a senior economic lecturer at Wits, was interviewed by Radio Islam International.

He claimed that Gauteng cannot pay 30% of SANRAL’s e-toll debt and that the debt forgiveness program attempts to gain support in Soweto ahead of the 2024 elections.

In Gauteng, where there is competition for power among numerous parties, Mondi claims that the ANC is in a much weaker position in terms of popularity.

Listen to Dr Lumkile Mondi, a senior economic lecturer at Wits, on Sabahul Muslim with host Sulaiman Ravat.

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