WATER CRISIS: Mogale’s funds for maintaining its ageing water infrastructure are depleted
To make matters worse; Rand Water is using water-throttling measures against municipalities in arrears, with Mogale owing millions.
Its almost October and hundreds of households in Krugersdorp are still without water following last week’s report of Mogale City Local Municipality’s lack of concerns and funds as the water crisis continues.
Read here:
https://www.citizen.co.za/krugersdorp-news/365239/mogales-water-crisis-now-critical/
The latest on this developing crisis is that the municipality is running on a deficit budget; therefore it is unsustainable and can only cater for water emergencies and critical maintenance.
The local Democratic Alliance (DA) said in a statement to the News that planned and proactive maintenance and the replacement of aged water infrastructure cannot take place.
“This is the culmination of decades of infrastructure neglect by the council. The operational budget for Water Networks, Wastewater Networks and the procurement of Network materials overran by 25 per cent or R60 million. Urgent projects, such as the pipeline replacement project, have been stopped, as has Water Demand Management which overstepped its budget by 58 per cent. The council under-budgeted for water infrastructure for years and failed to provide supplementary relief in its adjustment budgets as promised. There is insufficient cash flow to pay creditors despite a R100 million overdraft.”
The lower than expected Revenue Collection rate of 89 per cent (July and August 2018) has further deepened the crisis. To be a sustainable municipality, the Collection Rate should exceed 93 per cent.
To make matters worse, Mogale’s Rand Water account is just more salt in this festering wound.
“The municipality purchases 30 billion litres of water from Rand Water annually at R7,69 per kilolitre. The council did not pay Rand Water for Bulk Water within 30 days for eight of the twelve months during the 2017/2018 financial year. It incurred R292 000 interest for overdue payments to Rand Water. This is classified as fruitless and wasteful expenditure by the Auditor-General. As recorded in the In-Year Monitoring Report, there was no expenditure to Rand Water during February and April 2018.
“In May, the council underpaid by R20 million. Rand Water practices water-throttling measures against arrear municipalities and those that do not adhere to payment arrangements. This has led to speculation that Mogale is being throttled by the water entity, although this has been denied by both parties who continue to play a disingenuous blame game.”
Currently Mogale owes Rand Water R32 million for the July/ August bulk water bill.
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