Johannesburg - Three municipalities are expected to meet with the Rand Water Board to discuss payment plans after it was announced that the board would cut their water pressure by 20% due to non payment.
Rand Water spokesperson Justice Mohale announced that the water utility had formally informed cashstrapped Emfuleni Local Municipality in Gauteng, Victor Khanye Local and Govan Mbeki Local municipalities in Mpumalanga of the water utility’s intention to reduce water pressure due to the non payment of services rendered.
The municipalities are expected to face these credit control measures by Rand Water today.
“The municipalities have failed to honour the agreements made to settle the outstanding amounts due to Rand Water. Rand Water will now implement these credit control measures to compel the municipalities to meet their obligations to settle amounts due for water services rendered,” Mohale said.
He said the water pressure to Emfuleni, which includes areas such as Vereeniging, Vanderbijlpark, Evaton and Sebokeng, will be reduced by 20%.
“The arrears amount due to Rand Water by the Emfuleni municipality is R994 million. The total outstanding amount due by the Emfuleni municipality is R1.1 billion,” he said.
Last month, the cash-strapped municipality’s situation went from bad to worse when it’s bank accounts were blocked and attached by court. The accounts were frozen after the municipality failed to appear in court for a court matter regarding the failure to pay a company contracted to install smart water and electricity meters in a 2013 multimillion-rand agreement.
Emfuleni municipal spokesperson Stanley Gaba told The Star on Sunday that during an urgent meeting it was resolved that the mayor Gift Moerane would meet with Rand Water chief executive Sipho Mosai today to try to get the payment issues resolved.
“Our situation is also informed by the fact that we have troubles with being able to access our bank account, so we are going to show cause that we are doing everything possible to pay Rand Water,” Gaba said.
He said the municipality will also source water tanks for affected areas.
Mohale said the water pressure to the Victor Khanye and Govan Mbeki municipalities will also be reduced by 20%.
Victor Khanye includes Delmas, Botleng, Eloff and Sundra, and Govan Mbeki includes Bethal, Embalenhle, Leandra and Kinross.
“The arrears amount due to Rand Water by the Victor Khanye is R185m. The total amount due by Victor Khanye is R194m,” Mohale said.
Rand Water said Govan Mbeki’s arrears due was R314m and the total due by the municipality R351m.
Mpumalanga Department of Co-operative Governance and Traditional Affairs spokesperson George Mthethwa said the department noted the warning from Rand Water.
“Last year, the department held several meetings with all parties concerned in an attempt to form an amicable solution, given the poor financial status of the Govan Mbeki and Victor Khanye municipalities.
“The meetings resolved the matter by signing payment plans in which the municipalities would pay Rand Water money as agreed,” he said.
Mthethwa said the decision to reduce the water supply was prompted by the department to revisit the matter with all affected parties as a follow-up to the previous meetings and payment plans.
“We are convinced that the matter will be resolved sooner than later,” he said.
The Star