Five municipalities will have their equitable share allocation frozen by the National Treasury until they pay their current debts to water boards, which run into the billions.
CAPE TOWN - Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa says a one-stop solution is needed to address the non-payment for water by municipalities to resolve the problem within the next six months.
On Tuesday, Parliament’s Water and Sanitation Committee heard that five municipalities will have their equitable share allocation frozen by the National Treasury until they pay their current debts to water boards, which collectively are owed more than R23 billion.Water and Sanitation Minister Pemmy Majodina said since September, interventions to get them to pay had not been successful, and at least two water boards were on the verge of bankruptcy.
The Matjhabeng, Kopanong, and Thabazimbi Municipalities won’t be receiving their equitable share from the National Treasury next month, with the hope that they will pay the Vaal Central and Magalies Water Boards, which could fold within the year. Merafong City and Victor Khanye Municipalities will also have their allocations frozen until they pay Rand Water.“We need a one-stop solution. If we deal with only two water boards now, two months down the line, we will be facing the same issue with others.”“The problem is a vicious cycle. Departments owe municipalities billions of rands. We need an approach where all the billions owed to municipalities by departments are paid through National Treasury.
While a R50 million bailout for water boards was being considered, the National Treasury said it would not be regular to do so outside of the annual budget.
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