Rand Water has called on municipalities in Gauteng, Mpumalanga, and the Free State to address outstanding debts of approximately R5 billion across multiple municipalities.
According to the water entity, municipalities including Emfuleni Local Municipality, Govan Mbeki, Merafong, Rand West, Victor Khanye and Ngwathe Local Municipalities are in debt. The outstanding payments stand at a whopping R5bn.
As part of options available, Rand Water said it sought alternative means to recover monies owed to it. It attached Emfuleni Local Municipality’s bank account, but has not yet been able to recover any funds from it due to persistent interference from the municipality.
“To recover funds owed by municipalities, Rand Water is proactively engaging with various government entities through the inter-governmental relations process.
“While certain municipalities are struggling to pay within the agreed timelines, others are unable to meet their payment commitments.”
Rand Water has planned infrastructure development projects that are designed to improve the provision of water services; and is thus negatively impacted by the lack of revenue generation to support such projects, the organisation said in a statement.
It further urged municipalities to pay for the water they received, and committed to collaborating with them to come up with sustainable payment plans.
“Rand Water urges defaulting municipalities to acknowledge the seriousness of the situation and proactively co-operate with Rand Water to find mutually beneficial resolutions.
“By working together, we can devise sustainable payment plans and mechanisms to recover the outstanding amounts, thereby ensuring the long-term financial sustainability of both the municipalities and Rand Water,” it said.