Rand Water has announced its decision to reduce water supply to municipalities nationwide due to pending debt owed to the company. Rand Water say they have outstanding debt from municipalities and this move is a measure to address outstanding payments.
Rand Water's spokesperson Makenosi Maroo said the utility has sought intervention from the national treasury to recover the outstanding funds. "We are invoking Section 31 of the Intergovernmental Relation Framework Act and we're declaring an intergovernmental financial dispute, so we're seeking intervention from national treasury, COGTA, including the Department of Water and Sanitation. As we know they do get an allocation from the national treasury, we're saying to the national Treasury that they must intervene."
Maroo said they are set to initiate a 20% reduction in water supply to Ngwate Local Municipality in the Free State, which has an outstanding debt of R63 million. The Merafong municipality in Gauteng which owes the water supplier R801 million will also experience a reduction in water supply, Lesedi Local Municipality in Gauteng owes over R52 million, RandWest Local Municipality also in Gauteng owes R546,799,201.29 while Emfuleni Municipality also in Gauteng owes Rand Water R945,453,844.18. "Despite our relentless efforts to accommodate this ongoing pattern of non-payment through bilateral engagements and participation in intergovernmental relations forums, we have regrettably reached a stalemate. We've had several arrangements with these municipalities, but they are clearly taking advantage, they clearly have no intention to pay." Maroo said.