The City of Tshwane says the agreement with State-owned Eskom to settle the R6.67-billion historical debt it owes to the utility signals a turning point, ending years of costly litigation and redirecting the city's focus toward improving service delivery and enhancing revenue collection systems.

The city will adopt stronger financial governance practices to ensure this never happens again and, thereby, safeguard the city’s resources and financial health, Executive Mayor Nasiphi Moya said on December 2.

The arrangement with Eskom outlines a structured repayment plan spanning five years, with the first payment of R400-million scheduled for this month. The city has already paid R425-million for arrears for October.

A critical condition of this agreement was the timely payment of current accounts within 30 days of billing, she noted.

"The agreement is a significant milestone in our journey to financial recovery and stability. This is a journey of transformation, and it requires the collective effort of the government, businesses and communities.

"From financial recovery to equitable service delivery, the city is committed to building a Tshwane that works for all its residents. Together, we can achieve our vision of a financially stable, well-governed and inclusive city that serves its residents with dignity and fairness," she said in a speech on December 2.

“We are pleased to have worked collaboratively with the City of Tshwane to reach this outcome. This agreement plays a part in maintaining the sustainability of Eskom to drive the economic growth of South Africa and reduce our burden on the taxpayer," Eskom distribution group executive Monde Bala said in a separate statement..

Meanwhile, the City of Tshwane has approached the Labour Court to review a decision dismissing its applications for exemption from the 3.5% wage increase in the first year and a 5.4% wage increase for the third year of the wage agreement.

"The city has been navigating significant financial challenges that necessitate tough decisions regarding wage increases under the South African Local Government Association collective agreement.

"We believe these decisions overlooked the city’s financial constraints and broader implications for service delivery," said Moya.

"We remain open to engaging with unions and other stakeholders to explore sustainable solutions. However, our primary responsibility is to ensure financial stability while fulfilling our commitments to residents," she said.

Meanwhile, Hammanskraal residents have endured unsafe water conditions for decades.

Progress is under way with the commissioning of the Magalies Water Package Plant that is a crucial component of efforts to supply clean water to the region.

The City of Tshwane's collaboration with Magalies Water and the Department of Water and Sanitation continues to be instrumental in these efforts.

Key developments in the project include the installation of valves to separate areas where contaminated water from Temba Plant and Klipdrift Plant were mixing.

Systematic flushing and scouring of pipelines are also being done to improve water quality. An estimated 80% of the area has been flushed, with only Kekana Gardens still in progress owing to the current insufficient water supply by Magalies.

Further, regular water quality testing to ensure compliance with SANS 241:2015 standards is being done.

"We remain committed to providing updates and ensuring that this critical project stays on track to deliver tangible results for the people of Hammanskraal," Moya committed.

Meanwhile, the city has intensified its efforts to regulate spaza shops and protect public health. The City has inspected more than 400 spaza shops since November 25 and has issued fines and shut down non-compliant operations to ensure residents have access to safe and healthy food options.

It has also introduced an online registration portal for spaza shops to streamline its compliance processes and enhance oversight.

"Additionally, a draft Informal Trading and Township Economy By-law has been approved by Council for public consultation. This by-law proposes stricter licensing requirements, enforces health and safety standards, and outlines penalties for noncompliance," she said.

The City called for all stakeholders to participate in the public consultation process to shape policies that reflect community needs and priorities.

"This administration is dedicated to balancing enforcement with empowerment by supporting informal traders while safeguarding public health," Moya said.