Lesedi makes R52.4m payment to Rand Water as Municipality strengthens financial recovery
Lesedi Local Municipality has paid more than R52m to Rand Water after receiving part of its equitable share allocation, while also introducing a long-term repayment plan and new financial measures aimed at securing uninterrupted water supply and restoring financial stability.
Lesedi Local Municipality has taken another step towards restoring its financial stability by paying R52.4m to Rand Water as part of its debt repayment commitments.
The municipality confirmed in a media statement issued on July 21 that the payment of R52 455 340 was made on July 16, shortly after receiving a portion of its July equitable share allocation from National Treasury.
The payment forms part of the municipality’s obligations under the Debt Settlement Agreement with Rand Water and follows weeks of concern over Lesedi’s financial position and its ability to meet its commitments to the bulk water supplier.
In addition to the payment, Lesedi has signed an addendum to the existing Debt Settlement Agreement, introducing a structured long-term repayment plan aimed at reducing historical debt while ensuring communities continue to receive reliable water services.
The municipality said the latest payment reflects its commitment to restoring financial stability and strengthening its partnership with Rand Water.
To avoid future financial pressure related to bulk water payments, the municipality has announced a series of interventions.
These include strengthening debt collection and credit control measures, enforcing its Credit Control Policy, promoting debt-settlement incentive programmes to encourage residents to settle outstanding municipal accounts, and improving the collection of debts owed by government departments.
Lesedi also plans to fast-track the implementation of a water telemetry system to improve water monitoring, billing accuracy, leak detection, and reduce water losses.
The municipality said it will continue implementing cost-containment measures to ensure available resources are directed towards critical service delivery obligations, including bulk water payments.
The municipality reiterated its commitment to maintaining a constructive relationship with Rand Water while implementing financial recovery measures aimed at improving liquidity, increasing revenue collection and ensuring future obligations are met.
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