MEC Dibolelo Mance
Bloemfontein
On Wednesday, 05 February, the Mangaung Metropolitan Municipality’s power utility, Centlec SOC, disconnected electricity in all government buildings due to mounting unpaid debts. This drastic move follows revelations that the provincial government owes the municipality a staggering R1.3 billion, with various entities failing to settle their accounts.
Among the major defaulters, the Department of Public Works owes Centlec R200 million, while the Free State Development Corporation (FDC) has an outstanding balance of R450 million.
The disconnection extended beyond government buildings, impacting businesses that rely on electricity to operate. Properties owned by the Georgiou family, which include the Waterfront Mall, owes R44 million, were among those that lost power, raising concerns about the economic impact of the blackout.
This move by Centlec mirrors a similar action taken in March 2022, when the utility recovered R90 million after cutting off electricity to provincial government buildings.
The MEC for Public Works and Infrastructure, Dibolelo Mance, attributed the crisis to a five-year accumulation of unpaid debt across various government departments. She stated that discussions are ongoing with the legislature, the provincial executive, and the treasury to find a resolution.
“We have been raising this issue in different forums and have engaged with the executive committee (Exco) to explore solutions,” Mance told The Pixley Independent. “One proposal is to allow each government department to pay directly for its water and electricity instead of relying on Public Works to cover these expenses.”
Mance further noted that if the centralisation of the budget for municipal services continues, Public Works should be allocated adequate resources to meet these obligations.
The Head of the Provincial Department of Public Works, Mosa Masimene, acknowledged the financial strain and stated that efforts are being made to settle outstanding debts. Masimene detailed that the department had allocated R402 million in the current financial year for municipal services, including electricity. Of this amount, R296 million has already been paid, with a recent payment of R87 million made on January 28.
Despite the current crisis, MEC Dibolelo Mance remains committed to finding a sustainable solution. She emphasised that ongoing negotiations with key stakeholders including the provincial treasury are aimed at developing a workable model that will prevent future disruptions.
“There is a clear commitment from the government to address this issue, and we are working tirelessly to ensure that essential services are restored as soon as possible,” Mance assured.
