Africa-Press – South-Africa. Rand Water is considering legal options to try and recoup more than R4 billion owed by six municipalities.
In a statement, it said the City of Tshwane, Emfuleni, Rand West, Merafong, Ngwathe and Govan Mbeki Local Municipalities owed the collective debt.
The water utility said it was “deeply concerned” by the “escalating debts” owed by municipalities.
“Rand Water is facing a significant challenge in relation to outstanding debts owed by various municipalities.
“Non-payment of bulk water by municipalities vastly threatens Rand Water’s financial position and is a direct threat to its medium and long-term sustainability, thus, to the sustainable provision of bulk water.”
Rand Water added that it had “attempted to resolve and accommodate non-paying municipalities”, including entering into bilateral engagements and agreements.
It said:
“Rand Water finds itself with no alternative but to pursue legal recourse through court proceedings to enforce the adherence to the existing agreements. We believe that resorting to legal action is regrettable, however, imperative to protect the integrity of the agreements and secure our financial stability.
“Rand Water would like to emphasise that our preference has always been to engage in constructive dialogue and find mutually beneficial solutions to the challenges faced by municipalities.
“However, the magnitude of the outstanding debts has reached a critical level, requiring urgent action.”
For More News And Analysis About South-Africa Follow Africa-Press
