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Sedibeng Water Board drowning in debt

───   CATHY DLODLO 06:22 Tue, 12 Apr 2022

Sedibeng Water Board drowning in debt  | News Article

Unpaid invoices to service providers at Sedibeng Water Board top the list of outstanding debt at water boards in the country.

This government entity is the bulk water supplier to the Northern Cape and parts of the Free State. At the end of the last month it had outstanding invoices amounting to more than R5 billion.

The information formed part of an answer on a written question - about the financial status of Water Boards - that was tabled in Parliament. It further states that the entity was awaiting revenue from debtors that include several municipalities in the Free State - with billions in outstanding debt.

ALSO READ: Sedibeng Water warns of FS supply interruptions

In an effort to force its biggest debtors - Matjhabeng Local Municipality and Nala Local Municipality - to sign payment agreements and to pay chunks of its outstanding debt, the water board had to resort to reducing the flow of raw water to towns in these municipalities.

OFM News reported earlier that the national department of Water and Sanitation are looking at ways to address the financial woes of the Sedibeng Water Board and that might include plans to incorporate a part of it into Bloem Water.

ALSO READ: Sedibeng Water reaches the end of an era

This Free State-based water board had the second lowest outstanding invoices – amounting to R3.3 million - during the period under review.

ALSO READ: Sedibeng Water narrowly pays salaries

The second highest number of unpaid invoices were worth R722 million at Rand Water. Outstanding invoices at the National Department of Water and Sanitation and its other Water Boards in the country by the end of the 2021/2022 financial year were as follows:

•The Department of Water and Sanitation had 29 invoices amounting to R159 million

•Amatola Water had 472 invoices amounting to R280 million

•Lepelle Northern Water had 82 invoices amounting to R402 000

•Magalies Water had 76 invoices amounting to R103 million

OFM News


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