Rand Water told the committee that national non-revenue water sat at about 48%, against a global average of about 30%.
Not surprisingly, municipalities owe Eskom close to R100 billion and a further R23.4 billion to SA’s nine water boards. Picture: iStock
Rand Water, Lepelle Northern Water (LNW) and Magalies Water told parliament’s portfolio committee on water and sanitation that municipal customers owed them about R9.7 billion combined.
According to the water boards, the unpaid bills were slowing efforts to expand supply.
The figures were measured on different dates and in different ways.
Municipal debt piles up across three provinces
Rand Water group chief executive Sipho Mosai told MPs that Emfuleni, Merafong City, Randwest City and Govan Mbeki were its worst defaulters.
He said the board had offered relief programmes, special payment arrangements and direct talks between finance chiefs.
“The top non-performing or defaulting municipalities owe a combined total of R5.612 billion (2025: R5.588 billion) for long outstanding arrear debt (a 0.44% increase if compared to FYE 2025-26),” Mosai said.
Magalies Water chief executive Ofentse Nthutang reported that bulk water debt reached R978 million by 30 June 2026.
Operations and maintenance debt stood at R1.7 billion.
“Magalies Water terminated the operations and maintenance services,” Nthutang said, referring to Madibeng and Kgetleng.
Thabazimbi, which owed about R266 million, was among those that agreed to a repayment plan.
“The Municipality signed a payment agreement and committed to settle the account in three years,” Magalies Water stated.
LNW chief executive Dr Cornelius Ruiters said customers owed R1.43 billion at 30 September 2026, with only 22% recovered. He asked the committee for political intervention to enforce payment.
Boards report stable finances
Mosai said Rand Water recorded 102.57% of its budgeted revenue in the quarter to June 2026.
It also cut its debtors’ days to 85 from 125.
However, it spent only 90% of its capital budget against a 95% target. These results were still pending official launch.
Nthutang said Magalies Water’s surplus rose 15%.
“Profit increased as no debt write-offs were recorded during the 2025-26 financial year,” he said. The board’s cost-containment drive also helped. “The Board continued with the implementation of cost-containment measures during the 2026 financial year, which contributed to improved financial performance,” Magalies Water claimed.
Looking ahead, the utility was confident about its liquidity. “Magalies Water will be able to meet its short-term obligations over the planning period,” Nthutang added.
Ruiters said LNW’s revenue slipped to R1.67 billion in 2024-25 from R2.04 billion.
The utility nonetheless reported seven consecutive unqualified audit opinions.
Billions earmarked for new infrastructure
Mosai said Rand Water would spend about R41 billion on capital projects over five years, with pipelines taking the biggest share of renewals and augmentation.
The utility also set itself energy goals. “Reduce electricity costs by at least 5% across targeted sites, reduce Rand Water’s carbon footprint by 10%, and transition 30 MW of operational load off the Eskom grid by 2029,” Rand Water stated.
LNW planned upgrades at Olifantspoort, Politsi, Nandoni and Doorndraai that would add about 130 megalitres a day.
“To fund this expansion, LNW has developed a R7.81 billion infrastructure pipeline,” Ruiters said.
Magalies Water’s Klipvoor scheme would supply Bela-Bela and Modimolle. National Treasury had already transferred R1.9 billion, but the utility still had to source R4 billion from private funders with help from the Development Bank of Southern Africa.
“The project funding application has been approved by Budget Facility for Infrastructure (BFI),” Nthutang said.
Water losses and vandalism hit revenue
Mosai told the committee that national non-revenue water sat at about 48%, against a global average of about 30%.
He said ageing infrastructure, illegal connections and weak maintenance drove the losses. “South Africa is a water-scarce country,” Mosai said.
Magalies Water’s revenue fell 9% because of heavy losses in the pipeline supplying Thabazimbi.
“A project is currently underway to replace the porous sections of the pipeline,” Magalies Water stated.
LNW asked MPs to back joint law enforcement operations with police and municipalities. “Illegal connections and infrastructure vandalism are severely impacting our Water loss targets,” Ruiters said.
