Govan Mbeki Municipality has taken steps to address long-standing utility arrears, making significant payments to both Eskom and Rand Water in June 2026 while warning that substantial balances remain.

June payments and outstanding balances

• Eskom: The municipality paid R16 000 000 in June 2026. After this payment, Eskom’s outstanding balance remains approximately R7 056 544 335.39 (report recommendation 6.1; see page 7 of the municipal standing item).
• Rand Water: A payment of R73 004 287.17 was made in June 2026. The outstanding balance to Rand Water after that payment is R876 306 708.87

Context and arrangements:

The report (Standing Item on Eskom and Rand Water Accounts: June 2026) explains the municipality’s prolonged inability to meet its statutory 30-day payment requirement under the Municipal Finance Management Act and notes that a Financial Recovery Plan and negotiated settlement arrangements are being used to manage historic debt. Management has entered into Debt Settlement Agreements (DSAs) and Distribution Agency Agreements (DAAs) to structure repayments and avoid service interruptions.

What the tables show

• Eskom accounts:
• The detailed billing table lists account-level opening balances, monthly billing and interest components. The municipality cites limited revenue collection and cash flow constraints as the primary barriers to full settlement.
• Rand Water accounts:
• The Item tabled in council includes a month-by-month account analysis and the DSA payment schedule, showing planned monthly/quarterly payments (many months include R70 million quarterly commitments) and recorded payments to date. As at 30 June 2026, the Rand Water ledger and proof of payments are appended to the report.

Financial implications:

Municipal officials acknowledge that meeting financial obligations remains a “serious challenge” given the current financial position. Eskom’s debt — now in the billions — represents the most significant operational risk. The municipality reports prioritising Eskom and Rand Water payments where cash allows and continuing engagement with the creditors to maintain service delivery.

What this means for residents

• Essential electricity and bulk water supply remain dependent on continued adherence to DSAs and improved municipal cash flow and revenue collection.
• While recent payments reduce immediate short-term risk, the scale of remaining debt — especially to Eskom — implies longer-term fiscal pressures and the need for sustained recovery measures.