Water Dept: Good progress being made with defaulting municipalities
Municipalities have until Friday to come up with ideas on how they will start making good of their promises to pay their debt.
JOHANNESBURG – Eleven out of 30 municipalities in arrears with the Water and Sanitation Department have committed to a payment plan to settle their combined debt of R10.7 billion.
Municipalities have until Friday to come up with ideas on how they will start making good of their promises to pay the money to the department and various water boards.
The department’s Sputnik Ratau says "good progress" is being made by the municipalities to find ways to pay their old and existing debt.
“We are confident in the process. We are also encouraged by the number of municipalities who have come to the party so far.”
One of the municipalities, which is committed to turning its financial position around, is the Emfuleni Municipality in Gauteng.
It has signed an agreement with Rand Water to pay off its R180 million debt.
Ratau says the department is confident most municipalities will meet the Friday deadline.
He adds the municipalities are reprioritising their budgets to deliver on their commitment to the water boards and the department.
(Edited by Shimoney Regter)