The OR Tambo District Municipality in the Eastern Cape recently reached a payment agreement with the Department of Water and Sanitation (DWS) to settle its outstanding debt amounting R87 million.

The department’s minister Nomvula Mokonyane met with the province’s premier Phumulo Masualle and OR Tambo Municipality Mayor Nomakhosazana Meth to resolve issues relating to the debt owed by the municipality to the department.

Officials from the municipality presented a council resolution for the consideration of the Mokonyane and Masualle, and outlined proposals by the district on payment of the outstanding debt to avoid further legal action by the department.

Mokonyane said the parties were able to reach an amicable decision.

“As a department, we have agreed with the municipality on a payment proposal relating to a debt totalling R87 million and will within the next two weeks conclude a memorandum of agreement with the municipality,” she said.

“We have also agreed with the municipality on reviving a joint task team that will allow us to provide further support to the district with regards to their water and sanitation programme, as well ensuring that we avert a future debt situation similar to the one we have since resolved,” she added.

The department said that a memorandum of the recent agreement will be reviewed by the state’s legal team.