Rand Water sends warning to indebted municipalities
Rand Water has warned it will move against outstanding debts of approximately R5 billion from multiple municipalities across the country.
Debts owned by municipalities in Gauteng, Mpumalanga and the Free State currently stands at R4.6 billion.
The utility says municipalities are struggling to pay within the agreed timelines, while others are unable to meet their payment commitments.
The indebted municipalities include Emfuleni Local Municipality, Govan Mbeki, Merafong, RandWest, Victor Khanye and Ngwathe Local Municipalities.
“To recover funds owed by Municipalities, Rand Water is proactively engaging with various government entities through the Inter-Governmental Relations process," says Rand Water spokesperson Makenosi Maroo.
“Rand Water has planned infrastructure development projects that are designed to improve the provision of water services; and is thus negatively impacted by the lack of revenue generation to support such projects.
“Rand Water urges municipalities to pay for the water they receive and commits towards collaborating with them to come up with payment plans that they will be able to adhere to.”
The water utility has urged defaulting municipalities to proactively cooperate in finding a solution.
“By working together, we can devise sustainable payment plans and mechanisms to recover the outstanding amounts, thereby ensuring the long-term financial sustainability of both the municipalities and Rand Water," says Maroo.
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