Rand Water Could Shut Down if R7.7 Billion Debt Not Paid by South African Municipalities

Rand Water Could Shut Down if R7.7 Billion Debt Not Paid by South African Municipalities

  • Nonpayments made by municipalities in South Africa are burdening Rand Water and hampering its ability to perform effectively
  • Municipalities owe the State-Owned Entity R7.7 billion in unpaid bills, and if this continues, Rand Water may have to shut down
  • South Africans weighed in, and many lamented the poor maladministration that resulted in nonpayment

With nine years of experience, Tebogo Mokwena, a Briefly News current affairs journalist, provided insights into infrastructure challenges and state-owned enterprises in South Africa at Daily Sun and Vutivi Business News.

Rand Water's COO Mahlomula Mehlo said municipalities owe Rand Water billions
Rand Water's COO Mahlomula Mehlo said the SOE could close because of unpaid debts to it. Image: @RandWater
Source: Twitter

JOHANNESBURG—Rand Water has warned that it will have to shut down if the R7.7 billion South African municipalities owe is not paid.

Municipalities owe Rand Water billions

According to Eyewitness News, the SOE's chief operating officer, Mahlomula Mehlo, said municipalities are not paying Rand Water. If the nonpayment continues, Rand Water will shut down. He added that Rand Water's only revenue source is the money it collects from municipalities.

Read also

Correctional services need R36 billion to address prison overcrowding

Rand Water supplies potable water to municipalities in Gauteng and a few in the Free State and the North West provinces. Rand Water also previously mentioned that Gauteng municipalities consume more water than they are licensed.

South Africans discuss

Netizens commenting on @ewnupdates' tweet did not believe the debt would be settled.

Douglas Wayne said:

"Spoiler alert: They won't settle their R7.7 billion debt. That money has long since been stolen."

KaSeme-official asked:

"Is there any department that's functioning 100% in this ANC government?"

Langwenya said:

"Water is a basic human right that is enshrined in the constitution."

NalediBarron asked:

"And just how long has Rand Water let the municipalities get away with non-payment, all the while householders have been faithfully paying their bills?"

Island Girl said:

"A critical resource at Irish due to, in my opinion, a total lack of accountability and mismanagement. Water is a life source."

Read also

EFF president Julius Malema in court for gun discharge case, SA discusses

Gauteng suburbs to experience water cuts

In a related article, Briefly News reported that Gauteng suburbs will be without water for 36 hours on 13 December 2024.

Rand Water announced that suburbs in Ekurhuleni and Johannesburg will have dry taps due to maintenance.

PAY ATTENTION: Сheck out news that is picked exactly for YOU - click on “Recommended for you” and enjoy!

Source: Briefly News

Authors:
Tebogo Mokwena avatar

Tebogo Mokwena (Current Affairs editor) Tebogo Mokwena is a Current Affairs Editor at Briefly News. He has a Diploma in Journalism from ALISON. He joined Daily Sun, where he worked for 4 years covering politics, crime, entertainment, current affairs, policy, governance and art. He was also a sub-editor and journalist for Capricorn Post before joining Vutivi Business News in 2020, where he covered small business news policy and governance, analysis and profiles. He joined Briefly News in 2023. Tebogo passed a set of trainings by Google News Initiative Email: tebogo.mokwena@briefly.co.za