Recently, Vaal Central reported to the Free State Legislature Portfolio Committee on Cooperative Governance that the mounting debt will cause serious cash-flow problems.Municipal water debt in the Free State has reached crisis levels, with the water utility owed billions of rands by cash-strapped municipalities.
“This in turn can impact service in some areas. However, the impact of quality and reliability in some areas have always been maintained by the entity and we are prioritising service delivery to ensure that communities continue to receive safe clean, and reliable water at all times,” Rapudungoane explains.
Cogta MEC Saki Mokoena explains: “We have had engagements with them together with the national minister of water and sanitation where we were working on measures and arrangements to get municipalities to service at least their current accounts. We are happy to say that we have arrived at an understanding or an agreement between Vaal Central and the affected municipalities.”
“Residents are buying water or they are paying for water but when the debt levels are growing and the Vaal Central decides to stop the water, it affects those residents and that’s a problem we have to attend to quite quickly,” adds Cloete.
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