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The Minister of Water and Environmental Affairs has revealed in the reply to a Democratic Alliance (DA) parliamentary question (see below) that at the latest date for which information is available over R1.2bn is owed by municipalities to the various Water Boards of South Africa. The latest amount owing to water boards is higher than the figure of R1.1bn that was owing as of 31 July 2009. The situation is hence getting worse, not better, and many water boards are as a result being placed under significant strain.

Water Boards are responsible for pulling together all the water resources within a particular area and ensuring that water is purified and delivered to where it is needed. Their income is almost exclusively from the sale of water to municipalities.

According to the reply to the question the total amount outstanding is made up of R653 416 344 in current debt and R608 630 712 in arrears. In a previous reply to a DA question the figure given for arrears as of 31 July 2009 was R525 632 866. It is clear that some municipalities are falling further and further behind on their payments. These municipalities must be held to account.

Over a billion Rand owed to water boards is extraordinarily high and must surely hamper the ability of many Water Boards to operate effectively and to make the required infrastructure investments.

There are several water boards which appear to be in a perilous situation. Lepelle Northern Water has over R249m owing to it, of which over R231m is arrears. Bushbuckridge Water has over R151m owing to it, of which R147m is arrears, while Sedibeng has R146m owing to it, with over R121m being arrears.

On the other hand it is notable that Overberg Water, Namakwa Water, Mhlatuze Water, Pelladrift Water, and Albany Coast Water have no arrears owing to them. The Municipalities who purchase water from these Water Boards must be commended.

Water Boards in general find themselves in difficult situations because on the one hand many municipalities struggle to pay and on the other hand the Minister of Water and Environmental Affairs sets the tariffs that Boards can charge municipalities.

To ensure that problems do not escalate further the Minister must place significant attention on making all the Water Boards sustainable. While there may be an argument in one or two cases to close a particular water board or to merge some water boards, the Minister must first and foremost address the lack of payment of funds to Water Boards by municipalities, as well as find means to tackle infrastructure problems and skills shortages.

The Minister of Water and Environmental Affairs must ensure that the National Treasury, which has a mandate to mediate between Water Boards and municipalities in terms of section 44 of the Municipal Finance Management Act, pressurises municipalities to pay their outstanding debts. There should be punitive measures taken against municipalities that are tardy in paying.

The Minister must make a point of listening to the concerns of Water Boards. One of the most common criticisms by CEOs of Water Boards that appeared before the portfolio committee in 2009 was that it was exceptionally difficult to engage with the Department of Water Affairs or to get it to respond to issues of concern. Considering the water stresses that South Africa faces, the proper functioning of Water Boards needs to be urgently addressed.




NATIONAL ASSEMBLY

FOR WRITTEN REPLY


QUESTION NO 809


DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 23 MARCH 2010
(INTERNAL QUESTION PAPER NO. 8)


809. Mr G R Morgan (DA) to ask the Minister of Water and Environmental Affairs:
(1) As at the latest specified date for which information is available, (a) what is the (i) total amount of money owed by municipalities to all water boards and (ii)(aa) current debt and (bb) arrears and (b) what is the (i) total amount owed by municipalities to each water board and (ii) how is each figure broken up in each case according to (aa) current debt and (bb) arrears;
(2) whether her department is making an effort to assist the boards in obtaining payment from the municipalities; if not, why not; if so, what are the relevant details? &nb p; &n bsp; NW942E
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REPLY:
&n bsp;
(1)(a)(i) R1 262 047 056

(1)(a)(ii)(aa) R 653 416 344

(1)(a)(ii)(bb) R 608 630 712

WATER BOARD (1)(b)(i) (1)(b)(ii)(aa) (1)(b)(ii)(bb)
Albany Coast Water R 332 424 R 332 424 R 0
Amatola Water R 16 925 810 R 15 521 574 R 1 404 236
Bloem Water R 68 669 111 R 20 925 227 R 47 743 884
Botshelo Water R 33 812 711 R 4 474 385 R 29 338 326
Bushbuckridge Water R151 369 685 R 3 884 511 R147 485 174
Lepelle Northern Water R249 624 440 R 18 021 416 R231 603 024
Magalies Water R 11 084 591 R 5 261 905 R 5 822 686
Mhlathuze Water R 3 673 773 R 3 673 773 R 0
Namakwa Water R 1 073 744 R 1 073 744 R 0
Overberg Water R 577 312 R 577 312 R 0
Pelladrift Water R 61 630 R 61 630 R 0
Sedibeng Water R146 185 611 R 25 005 670 R121 179 941
Rand Water R442 797 949 R424 259 672 R 18 538 277
Umgeni Water R135 858 265 R130 343 101 R 5 515 164

(2) Yes, My Department assists water boards in mediating disputes with regards to debt owed by water boards in the following manner:
• Performing preliminary investigation on the extent and nature of debt
• Meeting with stakeholders to clarify facts, mediate and recommend solutions
• Reporting back to My Department, CoGTA and National Treasury and following up with progress reports
• If the above fails, then My Department recommends that the dispute be mediated formally by National Treasury
• If this fails, the dispute will go to arbitration