South Africa's Finance Minister Enoch Godongwana speaks during his medium-term budget policy statement in Cape Town, South Africa, November 1, 2023.has announced plans to withhold grant payments to several municipalities, because of their debt to Water Boards. This after the Department of Water and Sanitation warned that two of the country’s seven Water Boards face bankruptcy due to municipal debts.
Treasury said the blocked funds would be released once municipalities begin paying off their current accounts. Department of Water and Sanitation Director General Sean Phillips said, “According to our calculations unless these few municipalities who haven’t been paying their current invoices to the Water Boards start paying their current invoices, there’s a risk that these two Water Boards will go bankrupt within the next six to 12 months.”
He added: “For example, the Vaal Central Water Board provides water to all the municipalities in Gauteng, so a Water Board uses a number of its water treatment works to provide water to a number of municipalities. If a Water Board goes bankrupt, it will stop being able to function and it will stop providing treated water to all the municipalities it serves, not just the few who haven’t been paying.
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