Rand Water takes legal action against municipalities owing R4 billion

In a bid to address its mounting financial challenges, Rand Water is pursuing legal action against municipalities in Gauteng, Mpumalanga and the Free State.

The municipalities collectively owe approximately R4 billion to Rand Water.

The Gauteng water utility warns that the non-payment of these debts poses a threat to its long-term sustainability and its ability to provide bulk water to millions of South Africans.

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The affected municipalities include Tshwane, Emfuleni, Govan Mbeki, Merafong, Rand West, and Ngwathe local municipalities. While some municipalities are struggling to meet the agreed payment timelines, others are unable to make any payments at all.

No choice

Rand Water said the dire situation has left it with no choice but to take legal action to force the municipalities to adhere to the existing agreements and safeguard its financial stability.

“The magnitude of the outstanding debts requires immediate attention. Non-payment of bulk water by municipalities vastly threatens Rand Water’s financial position and directly undermines its medium and long-term sustainability in providing reliable bulk water services,” said Makenosi Maroo, spokesperson for Rand Water.

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She said Rand Water’s attempts to resolve the issue with non-paying municipalities were unsuccessful, leading to a deadlock.

Financial strain

The financial strain faced by Rand Water not only affects the utility but also jeopardises the supply of clean and reliable drinking water to millions of South Africans.

“Rand Water is dedicated to its customers and guarantees the sustained provision of high-quality drinking water, ensuring the long-term security of their water supply. We, therefore, urge all stakeholders to treat this matter with the utmost urgency,” said Maroo.