The Democratic Alliance (DA) has requested a briefing from the Gamagara Municipality’s finance committee on its debt management plan, as the municipality’s Eskom debt continues to escalate despite its participation in the debt relief programme.
Gamagara’s debt to Eskom has ballooned from R650 million in February 2025 to R747 million in September 2025, and now stands at R816 million. This debt alone amounts to 108% of the municipality’s annual budget of R750 million. Eskom is also only one of several creditors owed money by the municipality.
Earlier this year, the DA warned that urgent intervention was needed to strengthen financial management and ensure compliance with the Eskom debt relief programme, with failure to do so risking the loss of millions of rands that could otherwise be used to improve service delivery.
While Gamagara is currently meeting its monthly obligations under the debt relief programme, the continued growth in Eskom and other outstanding debt raises serious concerns about the municipality’s overall debt management strategy.
Under the programme, the municipality pays approximately R8 million per month towards its debt, plus R5 million in interest, while generating around R32 million in monthly revenue from electricity sales, allowing the debt burden to grow.
The municipality also owes more than R26 million to other creditors. These include R16.8 million owed to the Northern Cape Department of Transport, Safety and Liaison, R2.84 million to Madiali Security Services, as well as outstanding amounts to Vaal Central Water, refuse removal contractors and service providers involved in projects such as the Deben water project.
The DA requested a comprehensive debt management briefing and payment plan during last week’s finance committee meeting and will continue to press for this information as a matter of urgency.
Gamagara must prioritise reducing its debt burden and restoring financial stability to eventually free up funds to invest in roads, water infrastructure, electricity networks and other essential services that residents depend on.