NORTH West premier Lazarus Mokgosi has promised to intervene and help settle the standoff over the R2 billion debt owed by the troubled City of Matlosana to non-profit company (NPC), the Midvaal Water Company (MWC).
Mokgosi and Matlosana mayor Fikile Mahlophe this week met MWC chief executive Matshedisho David Dikoko, who discussed the municipality’s indebtedness to the company.
According to the MWC, the debt currently stands at about R2bn and is increasing, not only threatening its financial viability but also hindering its capacity to open access to water for those in need in the North West and across the country.
Mokgosi and Mahlophe have both committed themselves to intensify ongoing efforts to resolve the unfortunate impasse by ensuring that the City of Matlosana sticks to the payment arrangement that it entered into with the MWC.
In addition, the premier also expressed support for the discussions between the Department of Water and Sanitation and the MWC on the proposal to write off the close to R1bn that the company owes the government for raw water.
The talks will also see the MWC reciprocate by writing off the same amount from the City of Matlosana’s debt.
Mahlophe recommitted the municipality to its payment plan.
“As the political head of the municipality, I will continue to nudge and ensure our administration adheres to the terms of the payment plan as not paying for the services that the municipality receives from MWC puts not only its future in jeopardy but also has the potential to visit on the residents and other water users of our city untold suffering should MWC not be in a position to supply bulk potable water,” he said.
Dikoko committed the MWC to partnering with the government and other parties to find solutions to the water challenges facing their province and country.
He added that the MWC’s commitment included making available an excess water capacity of about 200 megalitres of water per day to be distributed to those in need.
Plans are being developed to ensure that North West residents have access to clean, drinkable water in the shortest possible time starting in the Dr Kenneth Kaunda district and then extending the water infrastructure to Dr Ruth Segomotsi Mompati and Ngaka Modiri Molema.
In November, the Sunday Independent reported that Mokgosi, who is also the ANC deputy chairperson in the province, had sparked a war of words with the MWC when he described the company as a “state-owned entity”.
This forced Dikoko to publicly refute the claim, stating that the MWC was an NPC in terms of the Companies Act 2008, was not state-owned, and did not have shareholders.
Instead, in the MWC, as per its memorandum of incorporation, customers that consume at least 10% of its products/services (bulk, potable water) qualify as members and have board representation.
Its major customers include Matlosana and mining companies but they are not shareholders.