COGTA committee calls for action on municipal debt crisis and water challenges

By Levy Masiteng 

The Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) on Wednesday urged for swift solutions to address the mounting debt crisis faced by municipalities in South Africa. 

The committee’s call on Tuesday comes after revelations that the debt owed to Rand Water, a major water utility, has ballooned to over R8 billion as of the third quarter of 2024/25.

The committee said that this staggering figure represents a significant increase from the R1.5 billion owed in the 2014/15 financial year. 

Last year, Rand Water revealed that the municipalities that owe them have a cumulative overdue amount of R3 billion, with R2 billion relating to Gauteng municipalities, R1 billion from Mpumalanga municipalities, and at least R63 million from Free State municipalities. 

The committee added that the entity’s financial health is under strain due to municipalities’ failure to honor their bulk water purchase and debt settlement agreements.

“The