Billions of rands are being lost through nonpayment by municipalities to Water Boards for water supply and services, triggering a stern warning from Human Settlement, Water and Sanitation Minister Lindiwe Sisulu for municipalities to pay for services.
“Monies that are lost through nonpayment to Water Boards by municipalities across the country currently stands at R12.6-billion as at March 2021,” said Sisulu.
Further, about 41% of municipalities’ potable water is nonrevenue, which means that it is either not being billed or paid for, while physical losses owing to leaks amount to R9.9-billion.
“These monies could have been put to much better use such us investing in new water and sanitation infrastructure or maintenance thereof,” she said.
“On the municipal debt, we plan to ensure that water tariffs are cost-reflective, fully implemented and can repay debt. Going forward, we will ensure that credit control measures are enforced to arrest increasing debt,” Sisulu concluded.