Kopanong Local Municipality, which includes Trompsburg, confirms that it owes Bloem Water over R300 million. This after the water institution exposed the financially strained municipality for not paying its debt, running into millions for some time now. The municipal spokesperson, Solomzi Phama, says many factors are being attributed to the failure to pay the debt and those include the low revenue collection from communities, which he says it has had a negative impact on the initial agreement. Phama adds that the municipality is in regular engagements with Bloem Water, and the Provincial and National Government for further assistance.

"As an institution, we have been making strides in servicing the debt, however, low revenue collection from our communities has impacted negatively on the initial agreement. Note should be taken that engagements with Bloem Water in honouring the agreement are continuous as the Municipality is reliant on Equitable Shares allocation, which is also utilised for day to day operations of the Municipality," he adds.

Bloem Water has blamed this huge amount of debt for its struggles and said this has a disastrous impact on its financial and operational sustainability.

Mangaung - the first metro under administration in South Africa - along with other municipalities such as Kopanong and Mantsopa, has allegedly defaulted on payments for close to a year, and in some instances for several years.

The debt owed to the water institution by these three municipalities is over R1.4 billion with Mangaung Metro responsible for 70% of that debt.

On Thursday, Bloem Water said that "they continue engaging stakeholders as to resolve the current status, to no avail, and it would seem that if the situation is not addressed, a catastrophe is imminent".

The outstanding balances, as of 31 May 2020, are as follows:

Mangaung Metropolitan Municipality - R1 014 898 965

Kopanong Local Municipality - R383 989 662

Mantsopa Local Municipality - R2 303 000

The total amount owed to Bloem Water - R1 401 191 714  

 OFM News