Large parts of South Africa could soon be without water due to mounting municipal debt, warns the chair of parliament's portfolio committee on water and sanitation, Leonard Basson.
Officials from the department of water and sanitation, as well as National Treasury, briefed the committee on Tuesday about the measures being taken to prevent various water boards from falling into bankruptcy.
It was revealed that the country is just months away from a devastating water crisis, with municipalities owing a staggering R22.36 billion to water boards as of June 2024.
The debt, accumulated since 2019, has increased by 151% to date.
Water boards could face bankruptcy within the next six to 12 months due to insufficient cash to pay for operating activities. The portfolio committee was told that Vaal Central Water and Magalies Water are of most concern.
South Africa's municipalities are facing significant financial challenges and are struggling to pay water and electricity-related debts.
The committee was told this issue is exacerbated by weak leadership and inadequate credit control, which hinders revenue collection.
This story is from the September 21, 2024 edition of The Citizen.
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This story is from the September 21, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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