iLembe councillors unanimously rejected a proposed review of Siza Water’s service contract last Thursday and moved instead to begin the process of extending the agreement.

The bipartisan decision was in response to a Section 78 (Municipal Systems Act) assessment tabled by municipal manager Sazi Mbhele and senior technical services manager Cingisa Mbola.

The year-long process is required when a municipality considers bringing an outsourced service in-house and would determine whether iLembe has the internal capacity to replace Siza Water.

Siza Water, owned by South African Water Works, has provided water and sanitation to about 40 000 households between Ballito and Etete since 1999, under a 30-year concession agreement due to expire in January 2029. This was the first water Private-Public Partnership in South Africa.

With ongoing water supply issues in other parts of the country – including Johannesburg, the KZN South Coast and iLembe itself – the question of whether to retain Siza has become a hot-button issue locally.

“Residents have been receiving very good service and we disagree with the municipality’s position that an assessment is needed,” said iLembe ANC chief whip Sandeep Oudhram.

“We are within our rights as a council to reject the assessment and have called for a contract extension instead.”

iLembe ActionSA and Democratic Alliance caucus leaders Annet Michelle Sewraj and Krsna Sing supported the move. Sewraj cited a petition with over 3 000 signatures in favour of an extension, while Sing cited Siza’s strong record of asset maintenance, expansion and service delivery to both affluent and underdeveloped areas.

Dolphin Coast Residents and Ratepayers Association chairman Deon Viljoen welcomed the outcome, calling it a “first step towards maintaining a high quality of service for our rapidly-growing area.”

To formally begin the extension, a Section 116 (3) (Municipal Finance Management Act) amendment must be tabled in council. A special meeting is expected to be called for that purpose, but no date has yet been set.

Siza Water managing director Shyam Misra said the company welcomed the council’s support and would be open to contract extension negotiations.

“Our achievements over the past 26 years speak volumes about the quality of our services and we are proud to contribute to development and the regional economy,” she said.

The iLembe district municipality had not responded at the time of publication.

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