Rand Water has called on several municipalities, including Emfuleni Local Municipality, City of Tshwane, Rand West Local Municipality, Merafong Local Municipality, Ngwathe Local Municipality, and Govan Mbeki Local Municipality, to acknowledge the seriousness of their outstanding debts and take immediate action to rectify their financial obligations.
This appeal comes in response to the mounting debt owed by these municipalities and their failure to honour their bulk water purchase and debt settlement agreements.
In a statement, the water utility disclosed that the combined overdue debt of these municipalities exceeds R4 billion.
They emphasised that the sustainable provision of clean and reliable water to millions of South Africans relies on the responsible fulfilment of these bulk water purchase agreements. Makenosi Maroo, the spokesperson for Rand Water, highlighted their position as South Africa’s leading water utility provider.
She explained: “Rand Water operates solely on funds collected from its customers, primarily municipalities, without any allocation from the national fiscus. The financial sustainability of Rand Water, which directly affects the present and future provision of water, depends on municipalities fulfilling their payment obligations for the water they receive.”
Maroo further stated that the water utility is facing significant challenges due to outstanding debts owed by various municipalities.
She said: “The non-payment of bulk water by municipalities jeopardizes Rand Water’s financial position, its medium and long-term sustainability, and the provision of bulk water. We have made relentless efforts to resolve these issues and accommodate non-paying municipalities through bilateral engagements and agreements in Intergovernmental Relations forums. However, despite our efforts, the situation has not improved, and we have regrettably reached an impasse.
“Rand Water has no choice but to pursue legal action through court proceedings to enforce compliance with the existing agreements. While resorting to legal measures is regrettable, it is necessary to safeguard the integrity of the agreements and ensure our financial stability. We want to emphasise that our preferred approach has always been constructive dialogue and finding mutually beneficial solutions with municipalities. However, the magnitude of the outstanding debts has reached a critical level, demanding urgent action,” she added.
Rand Water reiterates its unwavering commitment to its customers and the continued provision of high-quality drinking water. They urge all stakeholders to treat this matter with utmost urgency and encourage consumers to use water sparingly. Maroo concluded by stating: “We implore all parties involved to address this issue promptly and responsibly.”
