The Newcastle Municipality has revealed that residents owe over R2.4 billion in unpaid accounts, disputing claims made in a recent Eskom debt report that it describes as misleading.
Image: Doctor Ngcobo/Independent Newspapers
The Newcastle Local Municipality says residents and consumers owe the municipality more than R2.4 billion in unpaid accounts, while its debt to Eskom currently stands at R670.5 million under a payment plan agreement.
The municipality released the figures on Tuesday as it sought to clarify what it described as misinformation surrounding its financial position and obligations to Eskom.
In a statement, the municipality rejected a recent article on the Eskom debt. According to the municipality, the article created a false impression by focusing only on debt owed to Eskom while failing to reflect the broader financial realities facing the institution.
“The publication of sensationalised and unverified information compromises the integrity, credibility, and public image of the Municipality,” it said.
The municipality said that as of May 18, 2026, it owed Eskom R670,533,672.83 under a payment plan agreement.
However, officials said the municipality itself is owed significantly more by consumers in unpaid municipal accounts.
According to the municipality’s latest debt summary, total outstanding public debt is R2,440,731,744.87.
The Newcastle Eastern Wards account for R2,169,792,311.51 (R2.16bn), representing 88.9% of the total debt book, while the Newcastle Western Wards account for R270,939,433.36 (R270.9 million), or 11.1%.
The municipality said the figures demonstrate the severe impact of non-payment on municipal finances, cash flow, and service delivery responsibilities.
It added that discussions around municipal finances should present the full picture instead of focusing solely on Eskom-related debt.
The municipality further reiterated its commitment to transparency, accountability, and ongoing public communication on matters relating to governance, financial administration, and service delivery.
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