South African municipalities owe water boards over R2bn

South African municipalities owe the country’s 12 water boards R2.26-billion, Water and Environmental Affairs Minister Edna Molewa said on Thursday.

Of this, R1.4-billion is debt in arrears and R860.6-million is current debt.

In a response to a Parliamentary question from the Democratic Alliance, she indicated that Rand Water, which supplies 19 municipalities, was owed the most, with a total of R677.6-million outstanding.

Sedibeng Water, which supplies 11 municipalities in the Free State, Northern Cape and the North West provinces, has the second-biggest total outstanding with R602.8-million owed.

“The department is finalising the Institutional Reform and Realignment project, which aims at improving financial viability for all institutions by merging marginal viable institutions with those with stronger economic base that are financially viable. The economies of scale would enable institutions to be stronger and be able to deliver on their mandate and also to support local government,” Molewa said in a statement.

Source: Engineering News (By Megan Wait)

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