Rand Water contract for maintenance in City of Mbombela lapses
The two parties have expressed concern regarding the negative implications that may emanate from the termination of the contract, both have agreed to negotiate a new one with clear terms and conditions.
Rand Water has issued a statement saying the City of Mbombela has terminated its contract with it.
The statement reads, Rand Water had received with concern a letter terminating its maintenance and operations contract from the City of Mbombela (CoM), in Mpumalanga.
The termination would have come into effect at the end of December 2017. The City then requested an extension by three months to end of March to allow for a smooth transition.
The latest developments have prompted Rand Water to proactively inform the public that from May 1, the organisation will not take any responsibility for ensuring that adequate quality water is supplied.
The City of Mbombela owes Rand Water an amount of R68 588 000 and its current account is in arrears to the tune of R2 463 000. The outstanding debt and the escalating costs of maintenance and operations service provided to the City of Mbombela undermine Rand Water’s ability to provide a sustainable service.
Although the two parties have expressed concern regarding the negative implications that may emanate from the termination of the contract, both have agreed to negotiate a new one with clear terms and conditions.
The City’s delegation has agreed to write a letter to Rand Water detailing the rescission of the decision to terminate its services and provide a plan outlining how the outstanding debt will be settled.
Since the City of Mbombela’s intention to terminate the contract was received, Rand Water has embarked on a consultation process with employees who will be affected.
Furthermore, a task team consisting of representatives from Rand Water and the City of Mbombela will continue to engage in technical and human resource matters to ensure a smooth transition.
When Mpumalanga News contacted the City of Mbombela municipal spokesperson Mr Joseph Ngala he said the contract was not terminated. “The two years contract has lapsed. Rand water will continue with the service in the interim. ,” he said.
Mr Justice Mohale, Rand Water media relations manager, he referred the newspaper to the statement.
“Refer to the statement and we also want to say as per our statement the two parties are still negotiating,” he said.
“A suitable payment plan has also been established that was accepted by Rand Water for outstanding payments due to them. A plan will be tabled before Council outlining how the process will unfold in due course. The city remains committed to providing these basic services as per its constitutional mandate, therefore there shouldn’t be any cause for alarm,”said Ngala.
