Municipalities now owe water boards R21.3 billion, Majodina says

Minister of Water and Sanitation Pemmy Majodina says the municipal debt to water boards has now risen to R21.3 billion.

This comes as the department implements measures to strengthen and standardise debt collection processes and establish incentives for municipalities to pay their water board bills.

Presenting the Water and Sanitation Budget Vote last month, Majodina said the debt had forced the department to close down the Sedibeng Water Board in 2022 and transfer its functions, including assets and liabilities, to the Vaal Central and Magalies Water Boards.

ALSO READ: Hlabisa says dysfunctional municipalities a priority, but laments Cogta budget cuts

However, the Magalies Water and Vaal Central Water are now also experiencing increasing cash flow challenges due to non-payment.

The government has provided grants to municipalities to address water and sanitation infrastructure backlogs and provide water. However, Majodina said the water sector needed to be self-financing through revenues from the sale of water.

“The water boards do not receive money from the fiscus and this debt is threatening their ongoing financial viability, as well as the financial viability of the whole sector,” said Majodina.

The department will visit all the provinces to assist the municipalities develop additional improvement plans where necessary.

“One of our immediate priorities will be to work with our colleagues in Cabinet, particularly the Minister of Finance and the Minister of Cooperative Governance and Traditional Affairs, to find a solution to the problem of the financial sustainability of the water sector.

ALSO READ: Service delivery warning: Residents owe most of municipalities’ R347bn debt bill

“Despite the high level of support that we are providing to municipalities, in general, municipal water and sanitation services continue to decline.”

Majodina said the challenges would only worsen if not addressed amid the country’s population and economic growth.

Majodina on water projects

South Africa is one of the 30 most water-scarce countries in the world, yet our average consumption of water is 218 litres per capita per day, compared to the international average of 173 litres per capita per day.

“We have already captured 75% of the available surface water in dams, and the remaining opportunities for capturing surface water are expensive.”

ALSO READ: Rand Water ready to reduce supply to municipalities owing a collective R1.3 billion

Since 1994, the Department of Water and Sanitation has built 18 new dams.

These include:

• Qedusizi, Bivane
• Braamhoek
• Spring Grove
• De Bos
• Ceres Koekedouw
• Berg Rivier
• Boschmanskop
• Driekoppies
• Injaka
• Kettingspruit
• Mpumalanga
• Setumo Dam
• Bedford Dam
• Nandoni
• De Hoop dams
• Katse
• Mohale (jointly with the Lesotho government) in Lesotho
• Maguga Dam in eSwatini (jointly with the eSwatini government)

There are also 15 other major national water resource infrastructure projects to the value of more than R100 billion in different stages of implementation around the country.

ALSO READ: SA’s best and worst performing municipalities

Some of these projects involve raising the walls of existing dams, and others involve the construction of new dams.

“Many of these projects were delayed for a long period of time, but they have now all been unblocked, and it will be a priority for us to ensure that they are all implemented expeditiously.”