Tshwane To Restrict Water Flow To The Madibeng
18 August 2021
Tshwane To Restrict Water Flow To The Madibeng Local Municipality
Tshwane has issued an ultimatum to the Madibeng Local Municipality to honor the debt repayment commitment for bulk water supply by end of business tomorrow, Thursday, 19 August 2021, failing which the City will restrict water flow to the municipality with effect from Friday, 20 August 2021.
Tshwane supplies bulk water and electricity to a number of local municipalities, including Madibeng in the North West Province.
A commitment was made at a meeting between Tshwane and Madibeng officials on 1 October 2020 that the then-current account for water usage would be paid monthly until the metering issues were resolved. The water account arrears in October 2020 stood at R170 244 537,08. The average monthly current account is more than R7 000 000,00.
As per the meeting held on 23 July 2021 between the two parties, a minimum of R40 000 000 was requested (six months’ average monthly water usage), because no payments had been received since 30 October 2020.
The total amount owed to the City as of 06 August 2021 was R232 850 397, 13. It was agreed between the two parties that the outstanding debt would be serviced as follows:
- Pay R40 000 000, 00 or on before 19 August 2021;
- Pay the current account in full; and,
- Pay an additional minimum of R6 000 000,00 each month towards the arrears to settle the account in full on or before 31 December 2021.
Just before the closing of business today, Madibeng Municipality made a payment of R20 000 000, 00, which is R20 000 000 short of the settlement agreement.
It was further communicated to the municipality that the electricity accounts should be paid in full and on time. No down-payments are available. Failure to settle the accounts as per the terms of the agreement will result in the service being disconnected in accordance with the City of Tshwane Credit Control and Debt Collection Policy of July 2019.
The City purchases bulk water from Rand Water at a cost of R280 000 000,00 per month and its debtor’s book currently sits at R17 000 000 000,00.
The City will continue to intensify the enforcement of credit control to recoup the billions of rand it is owed by both business and residential customers to stabilize its finances and to enable it to render the much-needed services.
Issued by the Communication, Marketing, and Events Department.