Municipalities owe water boards R2bn – Gordhan
Based on reports submitted to National Treasury, municipalities owe water boards some R2-billion, Cooperative Governance and Traditional Affairs Minister Pravin Gordhan revealed in a written response to a Parliamentary question on Monday.
Municipalities in the Free State were the worst offenders, owing some R971-million combined, followed by those in Mpumalanga, at a joint R357-million, Limpopo, at R323-million, and the North West, where municipalities were, collectively, some R254-million in arrears.
The Northern Cape owed around R76-million in overdue water charges, while Gauteng, the Eastern Cape and KwaZulu-Natal owed R46-million, R42-million and R9.4-million, respectively.
Bringing up the rear was the Western Cape, which owed its respective water board R372 000.
The department said in a statement that it was working with provinces and the Department of Water and Sanitation to support water boards in the collection of monies owed to them.
“The various provinces facilitate agreements on payment plans from all municipalities with arrear accounts. These plans are approved by municipal councils, which are held accountable to honour them. Payment plans are implemented within a period agreed [on by] the [respective] water board and the municipality, which is usually within 12 months,” it stated.
The department was also jointly working with provincial treasuries to engage municipalities that had arrears on their accounts.
“In addition, municipalities are advised to review their operations, budgeting and tariffs to ensure sustainable solutions, including the preparation of financial recovery plans, where required,” it noted.
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