By Ntando Thukwana and Paul Vecchiatto
South Africa’s Treasury plans to withhold funds from five municipalities next month over their unpaid water bills, part of an effort to compel local governments to pay for basic services.
The Treasury will invoke a law allowing the authorities to block the payment of a so-called equitable share of money that’s allocated to municipalities to pay for services including water and electricity, according to a presentation by the department in parliament on Tuesday.
The municipalities of Matjhabeng, Kopanong, Thabazimbi, Merafong City and Victor Khanye are affected by the decision, it said.
“The purpose of interventions should be to restore financial stability, improve service delivery, and ensure good governance in distressed municipalities,” the Treasury said.
South Africa’s water boards are owed 23.4 billion rand ($1.3 billion), more than 70% of which is four months overdue. The debt hampers their ability to maintain and upgrade ageing infrastructure at a
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