Africa-Press – Eswatini. The Public Accounts Committee (PAC) has raised serious concerns over the growing debt burden facing the Eswatini Water Services Corporation (EWSC), warning that the utility’s financial sustainability could be threatened if outstanding customer debts are not recovered.
The concerns were raised during a PAC sitting held on June 19, 2026, where Members of Parliament scrutinised the Ministry of Natural Resources and Energy and its parastatals over issues highlighted in the Auditor General’s report. The sitting was chaired by Deputy Speaker Madala Mhlanga.
Presenting the audit findings, Auditor General Timothy Matsebula highlighted that EWSC’s trade and other receivables stood at E405.6 million as at March 31, 2024, representing an increase of E137.4 million from the E268.1 million recorded in the previous year.
He said the continued growth in outstanding receivables remained a recurring audit issue and raised concerns about potential financial losses and the corporation’s ability to recover long-outstanding debts.“The debt is now approaching half a billion Emalangeni and this raises concerns about recoverability and the long-term financial position of the corporation,” he said.
Responding to the findings, Ministry of Natural Resources and Energy Under Secretary of Technical Affairs Gabisile Mabuza acknowledged the concerns raised by the Auditor General and said a substantial portion of the outstanding debt was owed by government ministries.
She said EWSC had written to the Minister of Natural Resources and Energy, Prince Lonkhokhela, requesting that a paper be prepared for Cabinet consideration so that the matter could be escalated and government ministries encouraged to settle their outstanding accounts.
Mabuza further revealed that the corporation was intensifying the rollout of prepaid water meters, particularly among high-risk customers, as part of efforts to improve debt collection and reduce future arrears.
Chief Finance Officer Sifiso Phiri told the committee that debtors remained one of the biggest challenges facing the corporation.
He said the prepaid meter programme had already begun producing positive results, with more than 3,000 prepaid meters installed across the country.
According to Phiri, customers who migrate to prepaid meters and have outstanding balances enter into agreements to gradually settle their historical debts while continuing to purchase water credits.
He explained that the prepaid system operates in a similar manner to prepaid electricity. Customers purchase water credits in advance through approved channels such as MTN MoMo, banks and authorised vendors. After making payment, they receive a token which is entered into a Customer Interface Unit (CIU), an indoor device linked to the water meter. The meter then updates instantly and allows water usage based on the purchased credit.
Phiri said water is charged at E18.90 per kilolitre, equivalent to 1,000 litres. Customers currently purchase a minimum of five kilolitres, costing E95.
He explained that under the previous post-paid system, customers consumed water first and received a bill at the end of the month. The model often resulted in unpaid accounts accumulating over time, contributing to the corporation’s growing debt portfolio.
Under the prepaid system, customers pay before using water, allowing them to better manage their consumption and avoid accumulating new debt. He added that a portion of purchases made by customers with outstanding balances is automatically directed towards servicing their historical debts, while the remaining amount is credited for water consumption.
Phiri further disclosed that E89 million reflected in the corporation’s accounts related to advance payments for two projects, adding that more than 85 per cent of the amount had been recovered by the end of March 2026.
However, Deputy Speaker Mhlanga questioned the corporation’s debt analysis, noting that government ministries accounted for only E75 million of the E275 million debt reflected as at March 31, 2025.
He sought clarification on the source of the remaining E200 million and requested evidence showing that the receivables balance had indeed declined from E405.6 million to E275 million.
The Auditor General also requested proof supporting the reported reduction in debt.
PAC members expressed dissatisfaction with some of the responses provided, insisting that management clearly explain how the corporation intended to recover the outstanding amounts and continue operating effectively while carrying such substantial arrears.
Responding to the concerns, Phiri disclosed that approximately E260 million was owed by residential customers, E76 million by government ministries, E20 million by corporate clients and E27 million by the commercial sector.
He said the corporation planned to install 12,000 prepaid water meters over the next five years as part of a broader strategy to strengthen revenue collection and reduce debt levels.
Somntongo Member of Parliament and PAC member expressed concern over the pace of the prepaid meter rollout, saying many members of the public were already requesting the service. He noted that access to clean water was a key component of the Sustainable Development Goals (SDGs), which seek to ensure universal access to safe and affordable water by 2030.
The committee heard that prepaid customers no longer incur monthly standing charges previously associated with the post-paid system and only pay for the water they consume. Unused water units remain available on the meter until they are exhausted.
Members of the committee acknowledged the potential benefits of the prepaid programme but stressed the need for faster implementation to strengthen the corporation’s financial position while ensuring the continued delivery of reliable water services to emaSwati.
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