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Vaal Central Water Board on brink of collapse due to unpaid bills by municipalities

───   KEKELETSO MOSEBETSI 08:15 Wed, 18 Sep 2024

Vaal Central Water Board on brink of collapse due to unpaid bills by municipalities | News Article
The permanent delegates to the National Council of Provinces officially kickstarted the provincial week at the Fourth Raadsaal in Bloemfontein led by Mapule Dhlamini. Photo: Kekeletso Mosebetsi

“The Free State is driving the water board into bankruptcy. What we need to know is what will happen when the water board collapses.”

The Vaal Central Water Board is teetering on the brink of collapse due to the continued failure of several Free State municipalities to pay their water bills.

This pressing issue was raised during a question-and-answer session at the Free State Provincial Legislature, led by members of the National Council of Provinces (NCOP), who are in the province to assess service delivery challenges.

DA MPL Dr Roy Jankielsohn expressed serious concern over the financial strain being placed on the water board by the municipalities. According to him, Matjhabeng alone owes the water board over R6 billion. Other significant debts include R921 million by Mangaung, R768 million by Kopanong, and over R400 million by Nala.

“The Free State is driving the water board into bankruptcy. What we need to know is what will happen when the water board collapses. What is being done to ensure that people in the Free State have access to water, especially since we know Kopanong's supply has already been reduced by 30% due to this debt?” 

Deputy President, Paul Mashatile, responding to parliamentary questions, acknowledged the severity of the situation, noting the national government has engaged with the water board to address the watershedding issues affecting local municipalities. The 2021 State of Local Government report had already identified Kopanong as a service delivery hotspot and flagged it as a dysfunctional municipality.

No immediate resolution

Earlier this year, the Vaal Central Water Board warned it would reduce the water supply to municipalities like Matjhabeng, Kopanong, and Nala due to their mounting unpaid debt.

Despite the water board’s warnings, Matjhabeng contested the announcement, stating that discussions had taken place to develop a payment plan following an intervention by the Department of Water and Sanitation. However, the water board confirmed to OFM News that the matter is now in court, with no immediate resolution in sight.

The Office of the Auditor-General (AG) informed delegates that Mangaung Metro, Maluti-A-Phofung, Matjhabeng, and Metsimaholo did not meet their targets for infrastructure development, especially in areas such as water, sanitation, and electricity.

According to the AG’s Office, the main reasons for municipalities’ underperformance were insufficient budgets, misalignment between budget allocation and target achievement, and prioritising operational expenses over capital investments. Additionally, poor project planning, execution, and monitoring, as well as ageing and deteriorating infrastructure, were identified as contributing factors.

Jankielsohn emphasised the situation raises grave concerns about the sustainability of the Vaal Central Water Board and the provision of essential water services to residents. As municipalities across the Free State face mounting debts, there are fears service delivery will continue to deteriorate, potentially leaving residents without reliable access to water and electricity.

Members of opposition parties in the Free State Provincial Legislature. Photo: Kekeletso Mosebetsi

With its staggering water debt of over R6 billion, Matjhabeng is also one of Eskom’s largest debtors, with unpaid electricity bills exceeding R5.8 billion. While municipalities also owe Eskom a staggering R55.8 billion.

Cooperative Governance and Traditional Affairs MEC, Saki Mokwena, said intervention is already in process at affected municipalities to address the main issues.

OFM News/Kekeletso Mosebetsi dg

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