Rand Water is heading to court over debts owed to it by municipalities, saying it is deeply concerned about an ongoing failure by municipalities to respect their bulk water purchase and debt settlement agreements.
The water utility operates without any form of allocation from the national fiscus, relying solely on funds collected from its customers, primarily municipalities.
“Nonpayment of bulk water by municipalities vastly threatens Rand Water’s financial position and is a direct threat to its medium and long-term sustainability,” the entity said.
“The sustainable provision of clean and reliable water supply to millions of South Africans hinges on the responsible fulfilment of bulk water purchase agreements.
“We urge all municipalities, including the City of Tshwane, Emfuleni LM, Rand West LM, Merafong LM, Ngwathe LM, Govan Mbeki LM and Thembisile Hani LM, to recognise the gravity of the situation and take immediate steps to rectify their financial obligations.”
The collective overdue debt of these municipalities is more than R4bn.
Repeated attempts to reach negotiated payment plans with errant municipalities have failed.
“We have regrettably reached a deadlock.
“Rand Water finds itself with no alternative but to pursue legal recourse through court proceedings to enforce adherence to the existing agreements.”
TimesLIVE
Rand Water pushes back at municipalities over R4bn debt
Rand Water is heading to court over debts owed to it by municipalities, saying it is deeply concerned about an ongoing failure by municipalities to respect their bulk water purchase and debt settlement agreements.
The water utility operates without any form of allocation from the national fiscus, relying solely on funds collected from its customers, primarily municipalities.
“Nonpayment of bulk water by municipalities vastly threatens Rand Water’s financial position and is a direct threat to its medium and long-term sustainability,” the entity said.
“The sustainable provision of clean and reliable water supply to millions of South Africans hinges on the responsible fulfilment of bulk water purchase agreements.
“We urge all municipalities, including the City of Tshwane, Emfuleni LM, Rand West LM, Merafong LM, Ngwathe LM, Govan Mbeki LM and Thembisile Hani LM, to recognise the gravity of the situation and take immediate steps to rectify their financial obligations.”
The collective overdue debt of these municipalities is more than R4bn.
Repeated attempts to reach negotiated payment plans with errant municipalities have failed.
“We have regrettably reached a deadlock.
“Rand Water finds itself with no alternative but to pursue legal recourse through court proceedings to enforce adherence to the existing agreements.”
TimesLIVE