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Drastic Measures to Recover Unpaid Debts
Rand Water, a prominent water utility, has announced a drastic measure to address the mounting issue of overdue debt owed by municipalities across the country. In a bold move, the company plans to initiate a 20 per cent reduction in water supply to defaulting municipalities.
Among the first to face the consequences are the Ngwate municipality in the Free State, which owes a staggering R63 million, and the Merafong municipality in Gauteng, with an outstanding debt of a whopping R801 million.
**”We are invoking Section 31 of the Intergovernmental Relation Framework Act and we’re declaring an intergovernmental financial dispute, so we’re seeking intervention from the National Treasury, COGTA, including the Department of Water and Sanitation,”** stated Makenosi Maroo, Rand Water’s spokesperson. The utility has escalated the matter, seeking intervention from national authorities to recover the outstanding funds.
Maroo emphasized the gravity of the situation, adding, **”As we know they do get an allocation from the National Treasury, we’re saying to the National Treasury that they must intervene.”** The decision to reduce water supply underscores Rand Water’s determination to address the issue of unpaid municipal debt, which has become a significant financial burden for the company.
