Rand Water heads to court over indebted municipalities
Rand Water wants the courts to force indebted municipalities to cough up.
The utility says it is owed approximately R4 billion by municipalities in Gauteng, Mpumalanga and the Free State.
It says some municipalities are struggling to pay within the agreed timelines, while others are unable to make any payments.
The indebted municipalities include Tshwane, Emfuleni, Govan Mbeki, Merafong, Rand West and Ngwathe Local Municipalities.
Rand Water spokesperson Makenosi Maroo says the magnitude of the outstanding debts requires urgent action.
“Non-payment of bulk water by municipalities vastly threatens Rand Water’s financial position and is a direct threat to its medium and long-term sustainability, thus, to sustainable provision of bulk water.
"We have relentlessly attempted to resolve and accommodate non-paying municipalities and entered into bilateral engagements and agreements through intergovernmental relations forums. However, the situation has not improved, and we have regrettably reached a deadlock.
"Rand Water finds itself with no alternative but to pursue legal recourse through court proceedings to enforce the adherence to the existing agreements. We believe that resorting to legal action is regrettable, however imperative to protect the integrity of the agreements and secure our financial stability."
Maroo said Rand Water needs the money if it is to provide clean and reliable water supply to millions of South Africans.
"Rand Water maintains unwavering dedication to its customers by guaranteeing a sustained provision of high-quality drinking water, thus ensuring the sustainable security of their water supply. We therefore implore all stakeholders to treat this matter with the utmost urgency."
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