FS task force to deal with Sedibeng Water and municipal debt issues

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The water utility had previously asked two municipalities in the province to repay their debt, which amounts to billions of rand. The head of the Department of Cooperative Governance and Traditional Affairs (Cogta), Mokete Duma, said the task force should also establish whether the municipalities that owe the water company are paying their bills. These monthly payments reach millions of rand at a time.

OFM News previously reported that the Bothaville-based local municipality of Nala owed Sedibeng Water more than R245 million, while the Welkom-based local municipality of Matjhabeng owed it more than R4 billion. Duma says the Water Board has encountered difficulties and has not been able to function fully due to the debt owed to it by these municipalities.

“It is one of the entities that does not receive money directly from the national government tax authorities, but is expected to generate their own income from the sale of water. However, because the municipalities also have challenges, because people do not pay taxes and people are unemployed. So those are some of the problems. Established work teams will generally address these issues, ”he adds.

Sedibeng Water cut off water to towns like Bothaville, Welkom and Wesselsbron last week while claiming their arrears.

OFM News previously reported that a payment agreement has been made between Sedibeng Water and Matjhabeng to restore the water supply. Matjhabeng spokesman Kgojane Matutle told OFM News that the payment deal was born out of a series of meetings between the municipality, the provincial government, as well as Cogta’s deputy ministers over the past few days. .

Water supply was also restored to the local municipality of Nala on Thursday after residents were without water for at least two days.

This, after Sedibeng Water requested an urgent payment of over R 26 million, which is overdue. These 26 million rand is part of the debt of more than 245 million rand that the municipality owes to the water service. City manager Nokufa Radebe, however, told OFM News that the municipality could not pay R26 million but could not manage to pay its monthly payment of R4-5 million.

Radebe said she understands that the water cuts instituted by Sedibeng Water were the result of the restriction of the electricity supply to the Eskom power company, which is also struggling to pay its Eskom debt.

OFM news


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