Parliamentary committee on water welcomes Treasury’s decision to suspend municipal funds over water debt

By Nkhensan Chauke

A parliamentary committee on Water and Sanitation has welcomed the National Treasury’s decision to withhold equitable share funding from five municipalities with a huge debts to water boards.

This follows Treasury’s announcement on Tuesday that municipalities failing to sign repayment agreements with water boards would not receive their equitable share instalments or conditional grants due that day.

On December 4, five municipalities owing billions of rands to three water boards face this sanction unless they formalize repayment agreements.

The municipalities of Matjhabeng, Kopanong, Thabazimbi, Merafong City and Victor Khanye are affected by the decision, according to the Treasury.

The decision stems from an agreement between Treasury and Water and Sanitation Minister Pemmy Majodina, who informed MPs that the measure aims to deter other municipalities from defaulting.

On Tuesday, the committee received a brief from the National Treasury, the Department of Water and Sanitation and the South African