Residents of Govan Mbeki Municipality in Mpumalanga are likely to be faced with low water pressure in the coming months because the local municipality has repeatedly failed to pay Rand Water.
According to Rand Water, the municipality owes them R131.2 million. This includes arrears of R105 million and the current account of R25.8 million – plus interests.
Govan Mbeki Municipality had a meeting with Rand Water on 6 February during which they proposed to repay all the outstanding debt by August 2019.
Rand Water rejected the proposal. The water company want the R25.8 million to be paid before the end of February or they will reduce the municipality’s water pressure by 20 per cent.
Rand Water also wants the arrears amount of R105 million to be paid by December 2018.
GMM is planning to present the new repayment plan to council on 27 February. They have already presented the new repayment plan to the Finance Portfolio Committee.
Since 2011, the municipality has been struggling to generate revenue to settle their debt to Rand Water within the 30-day period as prescribed by the Municipal Finance Management Act (MFMA).
Ms Marietjie Fourie, DA councillor, said: “The executive mayor, Ms Flora Maboa-Boltman, must stop blaming the culture of non-payment by residents and business as the cause of the municipality’s financial challenges, while she fails to implement any working revenue enhancement strategies.
“This is evident of an ANC-led municipality that is unable to deliver adequate services to the people of GMM.
“It is evident that this ANC-led municipality cannot handle or account for its finances properly.
“They must swallow their pride and ask the Democratic Alliance (DA) to help them because where we govern; proper financial plans and billing systems are always on the right track.
“We will continue to monitor the situation, because the people of Govan Mbeki deserve a new beginning under a DA government that puts the needs of the people first.”
