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Rand Water says it is deeply concerned about escalating municipal debts and failure of municipalities to honour their bulk water purchase agreements.
Spokesperson Makenosi Maroo, said; “The entity is facing serious challenge in relation to outstanding debt owed by various municipalities. Non-payment by municipalities threatens Rand Water’s financial position and it’s a direct threat to its medium and long-term sustainability.”
“We have attempted to resolve and accommodate non-pay municipalities and have entered into bilateral engagements and agreement relations.
“However the situation has not improved and we have regrettably reached a deadlock.
“Rand Water with no alternative but to pursue recourse in court proceedings and force adherence to existing agreement.
“We believe that resorting to legal action is regrettable it is important to protect the integrity of Rand Water.”
Maroo emphasised that as Rand Water, their preference has always been to engage in constructive dialogue and to find mutually beneficial solution to the challenges faced by municipalities.
She continued, “However, the magnitude of the outstanding debt has reached a critical level requiring action. We therefore urge all municipalities, including the City of Tshwane, Emfuleni Local Municipality, Rand West Local Municipality, Merafong Local Municipality, Ngwathe Local Municipality, and Govan Mbeki Local Municipality to recognize the gravity of the situation and take immediate steps to rectify their financial obligations. The overdue debt of these municipalities is over R4 billion.”
