Mopani takes over Modjadji Water Works
The Mopani District Municipality has decided to takeover the operation and maintenance of the Modjadji Water Treatment Works from Lepelle Northern Water.
Executive Mayor of the Mopani District Municipality, Pule Shayi revealed during a courtesy visit to Modjadji Royal Council recently.
Shayi led a team of senior political leaders to Modjadji Royal Kraal to formally communicate the decision by the MDM council.
The Modjadji Water Treatment Works supply clean running water to thousands of villagers, businesses, schools and other institutions in Bolobedu North.
Shayi said that the council has resolved to take over from LNW as part of its cost recovery plan which will ultimately assist the municipality to fast track water provision to communities.
He also said that the support from the royal council is very important during this transition. Marie Helm, the Democratic Alliance councillor in the Mopani District Municipality council said that the decision of the MDM to take over services from Lepelle Northern Water has the potential to cause many problems in the future if not managed properly.
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She said that MDM has a 30-year bulk water supply services contract with Lepelle Northern Water Board and over and above that agreement, Lepelle Northern had been servicing and maintaining the Nkowankowa and Modjadji Water Works from the time when the schemes were managed by the Department of Water and Sanitation.
“The current review of financial status outlines that the costs to manage the two schemes can be absorbed if the district manages them without outsourcing.
Further, an average cost which Lepelle Northern Water billed MDM is R 2 322 320 m for Modjadji Water Works,” said Helm.
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She said that although on paper it looks like a good plan, care should be taken as the cost of employees, maintenance and other expenses will not necessarily decrease.
Helm said that she was not sure that MDM calculated the real cost of the take-over, neither is she certain that Lepelle Northern Water will agree to the proposal.
But the most important point is that MDM is still liable to pay the outstanding debt.
Helm further said the DA will monitor the process as the outstanding account does not correlate with the information provided.
