Rand Water gives Mpumalanga municipality 30 days to pay its R386m debt

Rand Water has given Victor Khanye Local Municipality in Mpumalanga 30 days to pay its more than R386m debt or face a 20% reduction in it’s bulk potable water services.

On Wednesday, Rand Water notified the municipality, which has struggled to pay its account since 2019, that the resulting debt of R386,947,508.31 was due on March 30. 

“The municipality’s continuous failure to make payment to Rand Water for the bulk water services debt is an outright breach of the relevant provisions of the BWSC [Bulk Water Supply Contract],” said the water entity. 

The utility stated in its notice that continuous efforts to recover monies owed by the municipality have failed. 

“Rand Water has notified the municipality of its intention to exercise its legislative and contractual powers to reduce/limit bulk potable water services by 20% after 30 days of this notice,” read the notice.

“This debt threatens the functional and institutional integrity of Rand Water and places in jeopardy Rand Water’s ability to provide bulk water services supply on a financially sustainable basis.”

The entity said the reduction does not completely terminate water supply, but limits the bulk water supply by 20% leaving the municipality with 80%. 

“Rand Water justly believes that the municipality will still be able to maintain continuous supply of water services to its residents,” the utility said. 

The municipality will also begin public participation processes to gather input on prioritising 80% of the water from Rand Water to minimise the impact on schools, old-age homes and hospitals. 

“Rand Water hereby invites all affected members of the public to submit written representations, comments and/or submissions indicating why Rand Water should or should not proceed with the contemplated reduction of water services,” read the statement.