The issue of municipal debt to water boards must be addressed more aggressively by all stakeholders.

This was the sentiment of the Department of Water and Sanitation call at a joint sitting of the Portfolio Committee on Water and Sanitation together with the Standing Committee on Appropriations (SCOA) held in Cape Town on Wednesday.

In a joint presentation on the latest update regarding the status of municipal debt to the water boards, the department together with the Department of Cooperative Governance and Traditional Affairs (COGTA), and National Treasury indicated that municipal debt levels remain a serious concern as the debt continues to rise.

Substantially high levels in Sedibeng

“This is even more so for Bloem Water, Lepelle Northern Water and Sedibeng Water, where the levels of debt are substantially high. The implication of such debt is that the viability and sustainability of the entities is being threatened as the overall debt levels continue to increase,” the departments said.

Sedibeng Water remains one of the municipalities with the biggest debt owed to it, with Matjhabeng Local Municipality owing R2 431 173 000, while Vhembe District Municipality tops the list of debtors to the Water Trading Entity (WTE) of the Department of Water and Sanitation to the tune of R691 088 000.

A collective effort

Commentating on the situation Minister of Water and Sanitation, Gugile Nkwinti, said it was important to encourage the payment of debuts by other entities and departments as well.

“In response to these challenges, we need to also encourage payment of debts by other government entities and government departments, both at national and provincial levels. We have to ensure that there is also a collective effort emanating from provinces to ensure such payments occur,” Nkwinti said.

Members of the Parliamentary Committees also suggested a need to look at ring-fencing portions of some of the grant funding received.

However, an official from Treasury cautioned that the Division of Revenue Act (DORA) is restrictive as to what can be done with the money.

The meeting stressed the importance of looking at resolving the systemic and structural issues, looking into the root causes still in place and challenges that may perpetuate non-payment.