City of Tshwane - water crisis
Mayor of Tshwane, Cilliers Brink with stakeholders during the launch of R33m water security project. Image: Twitter/@CityTshwane

Home » From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt

From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt

The City of Tshwane does not only default on its Eskom debt but also owes bulk potable water supplier Rand Water. Rand Water has called on the Metropolitan Municipality to make arrangements to settle its debt. THE CITY OF TSHWANE OWES RAND WATER Rand Water said the National Government does not allocate it funds and solely relies […]

By Nokwanda Ncwane
28-06-23 08:51
in Featured
City of Tshwane - water crisis
Mayor of Tshwane, Cilliers Brink with stakeholders during the launch of R33m water security project. Image: Twitter/@CityTshwane

The City of Tshwane does not only default on its Eskom debt but also owes bulk potable water supplier Rand Water.

Rand Water has called on the Metropolitan Municipality to make arrangements to settle its debt.

THE CITY OF TSHWANE OWES RAND WATER

Rand Water said the National Government does not allocate it funds and solely relies on funds collected from its customers, primarily municipalities.

The bulk water supplier said it is facing a significant challenge concerning outstanding debts owed by various municipalities and is deeply concerned by the escalating debts owed to it and the failure to respect bulk water purchase and debt settlement agreements.

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Rand Water spokesperson Makenosi Maroo said they have relentlessly attempted to resolve and accommodate non-paying municipalities and entered into bilateral agreements through intergovernmental relations forums. However, the situation has not improved and reached a deadlock.

Maroo said Rand Water has no choice but to pursue legal action to enforce adherence to the existing agreements to secure financial stability.

Rand Water City of Tshwane
Tshwane Mayor, Cilliers Brink with stakeholders during the launch of the R33 million water security project. Image: Twitter/@CityTshwane.

The City of Tshwane was recently blasted by Eskom for defaulting on its debt. The power utility also threatened to take legal action against the municipality if it doesn’t settle its debt which is over R1 billion.

The Metropolitan Municipality made headlines in the past year for failing to settle its debt. It argued that it is being singled out from other municipalities who are not paying Eskom its dues on time. In turn, the power utility said the City is the only metro that has erratic payments.

ALSO READ: City of Tshwane owes Eskom R1.9b as it defaults on its debt

THESE ARE THE MUNICIPALITIES OWING

  • City of Tshwane
  • Emfuleni Local Municipality
  • Rand West Local Municipality
  • Merafong Local Municipality
  • Ngwathe Local Municipality
  • Govan Mbeki Local Municipality
  • Thembisile Hani Local Municipality

The municipalities altogether reportedly owe Rand Water over R4 billion.

ALSO READ: Rand Water postpones major 58-hour shutdown in Joburg

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