Panic as Rand Water plans to attach ELM bank accounts

Rand Water aims to attach ELM bank accounts in July on almost R900 million outstanding debt, sparking yet another panic-stricken cat-and-mouse game between the two feuding state entities - and with even less funding for service delivery.

Craig Kotze

July 12, 2022

The stakes remain especially high for ELM as large-scale employee unrest, office occupations and hostage-taking are feared should salaries not be paid at the end of July – with large-scale strikes and damage to property similar to Eskom strikes expected.

Rand Water has officially confirmed it is planning to attach ELM Bank accounts in July.

To avoid a similar situation in June ELM reportedly emptied its bank accounts by paying staff and councillors almost a week earlier than usual on 21 June and not the usual 25^th payment date.

ELM Municipal Manager Lucky Leseane said last week success had been achieved in reducing water debt to R600 million – with talks with Eskom also continuing – but Rand Water said last week this was at R864 152 131,05 due to non-payment for two months.

To avoid a similar situation in June ELM reportedly emptied its bank accounts by paying staff and councillors almost a week earlier than usual on 21 June and not the usual 25^th payment date.

Now the game is on between the partially-administered and embattled municipality and the cash-strapped Rand Water to assess when enough funds are present in municipal accounts to trigger a meaningful attachment.

But indications are that ELM will prevent attachment of most funding by spending its funds before Rand Water can strike, say political sources.

But the ELM nightmare does not end with Rand Water – Eskom remains lurking in the wings also with a High Court Judgment for billions owed by ELM as well as at least two other business entities that are known to have court writs to be executed if they are not paid.

In confirming its intention to attach ELM bank accounts in July, Rand Water said:

“It is Rand Water’s intention to proceed with the execution of the writ and attach the bank accounts as ELM has still not remedied the default to date.”

Rand Water also confirmed it had indeed planned to attach ELM accounts in June due to non-payment.

“In line with the debt settlement agreement , Rand Water advised ELM of its intention to invoke the remedies available to us to address the event of default being the non-payment of services for a period of two months. The applicable remedy being the execution of the writ as per court ruling.”