Chairperson of the Portfolio Committee on Water and Sanitation, Leon Basson, warned on Monday that municipalities’ escalating debt to water boards, currently at R22 billion and rising, poses a grave threat to South Africa’s water system.
Basson disclosed these concerns during the committee’s weekly media briefing in Parliament, Cape Town.
Failure to settle these debts could lead to the collapse of water supply to municipalities, said Basson.
The outstanding debt has surged by 151% from 2019 to 2024, signaling a severe financial crisis in the sector.
This substantial indebtedness jeopardises the stability of water boards, with entities like Vaal Central Water and Magalies Water at risk of bankruptcy within the next six to twelve months.
The financial instability also imperils water services across the entire value chain, especially impacting regions such as the Northern Cape, Free State, and North West provinces.
The committee has endorsed the national government’s initiative to tackle municipal debt through the division of revenue allocation.
Under this arrangement, a portion of the defaulting municipality’s revenue allocation will be withheld until it has settled its debt to the water board.
Basson also raised concerns about delayed water projects and called for better planning, responsible budgeting and better project management.
He also urged municipalities to ensure infrastructure is properly maintained to prevent water wastage due to leaks.
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