Rand Water writes off millions as municipalities fail to pay

Africa’s biggest bulk-water supplier has had to write off millions owed by municipalities that have failed to pay their bills.

Rand Water Services Pty Limited booked an impairment of R382.3 million rand in the year to end-June as net debt owed by the South African municipalities it serves climbed 12% to R4.4 billion rand, the Johannesburg-based company said in results published Friday.

Emfuleni — home to the nation’s biggest steelmaking operations — owed the most, about a quarter of the amount outstanding.

Non-payment by local municipalities “poses a threat to the sustainability of water boards,” Water Minister Pemmy Majodina said, adding that she’s working with the ministers of finance and cooperative governance to find solutions.

The National Treasury last month said it plans to withhold funds from five councils in December over unpaid water bills as part of efforts to compel local governments to pay for basic services. Rand Water supplies two