The massive R10 billion debt owed by five Free State municipalities to major water supplier Vaal Central is threatening water security in the province.
Vaal Central indicated during a meeting of the Free State Legislature’s Portfolio Committee on Co-operative Governance and Traditional Affairs (COGTA) that the mounting debts of struggling municipalities will lead to the municipality facing serious cash flow problems in the near future.
The huge debt burden arose from the merger of Bloem Water and Sedibeng Water in 2022, mainly because Sedibeng went bankrupt.
Matjhabeng Municipality currently owes R6.9 billion to the water board. At the time of the merger in 2022, it owed R4.8 billion. So the municipality’s debt increased by R2.1 billion in just two years.
As a result of the financial crisis in the Kopanong Municipality, the municipality owes R768 million to the water board and residents’ water supply has already been reduced to 30%.
The Mangaung Metro and the Nala and Mantsopa municipalities owe R921 million, R404 million and R3.7 million respectively to the water board.
It will become increasingly difficult to supply these municipalities with water.
FF Plus warned from the start that the merger would not solve the water boards’ debt problems.
And although the new Minister of Water and Sanitation, Pemmy Majodina, met with relevant stakeholders in August, it is clear that there is no feasible plan to resolve the crisis.
The reality is that the government owes itself money.
Drastic action is needed to address the outstanding debts of Matjhabeng, Nala and Kopanong as non-payment in these municipalities is jeopardising the water supply of other municipalities.
FF Plus will put the minister under pressure by asking questions to indicate what she plans to do to make the availability of water in these municipalities sustainable.
Freedom Front Plus
www.vfplus.org.za