THE King Cetshwayo District Municipality (KCDM) Council today (Thursday) resolved to terminate its contract with uMngeni-uThukela Water (UUW).
This after the water board’s ‘unilateral’ decision to restrict the King Cetshwayo’s water supply, causing widespread outages across the district.
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KCDM’s decision was taken at a special council meeting at which the municipality approved the termination of the Bulk Services Agreement (BSA), effective 31 March 2025.
KCDM Mayor Sikhumbuzo Dlamini announced the municipality would in-source the provision of bulk water services at all its municipal-owned water plants with immediate effect, and UUW has been requested to conclude all its operational activities and exit the water plants.
“All operational staff at the KCDM water plants are advised that their jobs are safe, and engagements to this effect will commence immediately,” said Dlamini.
“The municipality has commenced with formal notifications of this decision to all affected stakeholders, including the district traditional leadership, ministers of Cogta, Water and Sanitation, the KZN premier, and the Cogta MEC.”
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Speaking to national talk radio this afternoon, UUW CFO Thami Mkhwanazi noted that the water board’s action would bear adverse effects on the affected communities; however, as a commercial government entity, they are obliged to collect revenue for sustainable operations and financial balance.
“If we don’t collect what is outstanding, we have our own cash flow challenge,” he said.
“We don’t receive any fiscus from government; we have to generate our own revenue by selling bulk water services,” said MKhwanazi.
The face-off comes amid an unpaid R600-million debt owed by KCDM to UUW, with communities in uMlalazi, Nkandla, Mthonjaneni and uMfolozi are most affected.
The South African Local Government Association’s (Salga) municipal debt portfolio committee report In 2024 named KCDM in the top 10 list of municipalities that owe water boards nationally.
Read more in the ZO Monday edition.
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