Municipal debt owed to water boards will impact the entire water value chain

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[Picture: GCIS]

Municipalities are not only struggling to settle their Eskom debt, but monies owned to water boards are becoming a rising problem.

Parliament’s Portfolio Committee on Water and Sanitation indicated that there has been an astronomical jump in the debt, warning that this will impact the entire water value chain. The committee’s chairperson Leon Basson highlighted that finding solutions to this unsustainable challenge is urgent and can no longer be deferred.

As of June this year, municipalities owed water boards over R20 billion. The committee has been told that between 2019 and 2024 there was average increase of 151% in debt.

Boards like Vaal Central Water and Magalies Water are also facing bankruptcy in the next six to 12 months, as they don’t have sufficient cash resources to pay for operations and have already stopped paying for their raw water.

The situation does not bode well for the communities these water boards serve.

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