National Treasury is getting ready to stop the funding of five municipalities valued at just under R500 million in an effort to get them to start paying for water.
The block in funding will take place from next month and Treasury will only start paying the municipalities in batches once they have started to pay these water boards.
The municipalities that will be impacted are Matjhabeng, Kopanong, Thabazimbi, Merafong City and Victor Khanye.
The Minister of Water and Sanitation, Pemmy Majodina told Parliament's Portfolio Committee on Water and Sanitation on Tuesday that South Africa’s water boards are collapsing because of non-payment.
The minister said that the decision to withhold the funds was taken by the Department of Water and Sanitation (DWS) and Treasury to prevent the bankruptcy of Magalies Water and Vaal Central Water.
She said that Treasury will invoke a law allowing government to block the payment of a so-called equitable share of money allocated to municipalities to pay for services, including water and electricity.
“The purpose of interventions should be to restore financial stability, improve service delivery, and ensure good governance in distressed municipalities,” according to Treasury.
How much is owed?
National Treasury noted that SA’s water boards are owed around R23 billion.
Treasury told Parliament that Matjhabeng and Kopanong owe the Vaal Central water board a combined R7.8 billion.
The municipality of Thabazimbi owes the Magalies water board more than R216 million.
The municipalities of Merafong City and Victory Khanye owe R1.54 billion to Rand Water.
According to the National Treasury, these five municipalities were going to get R483 million from government in early December and then another R362 million in late March 2025, but these payments are to be halted.
More trouble
Last week, the DWS blamed municipalities for an imminent water crisis in certain parts of the country.
The department’s Deputy Minister, Sello Seitlholo said that local government municipalities are not doing their jobs, hence certain municipalities experienced breaks in water supply.
“Municipalities must take responsibility for the challenges we are finding, and most of them are political. In the build-up to local government elections or any other elections, several political parties make promises to communities, when they get power they don’t deliver and this is why we find ourselves without certain services,” he explained.
He added that such problems arose because there was a lack of accountability from municipal officials.
Seitlholo said calling out corrupt politicians and officials in government should be prioritised because it would minimise the lack of service delivery issue.
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