Municipalities owe water boards R1.1bn

2012-05-16 21:51

Cape Town - Municipalities owe South Africa's water boards R1.1bn, Water Affairs Minister Edna Molewa said on Wednesday.

Briefing the media at Parliament ahead of debate in the National Assembly on her department's budget vote, she said while this did not look good, it was "just about" 10% of the boards' annual revenue.

"Water board debt is about R1.1bn. It's a lot of money, but the water boards' income per annum is over R8.8bn. That's the revenue collection," Molewa said.

"So we're really looking at income levels and money owed. I'm not trying to suggest that [the debt situation] is not bad, but given that we are able to collect... over R8bn... this debt is just about 10% of that."

It is understood the R1.1bn figure the minister gave is the arrears debt, that is older than 60 days.

Molewa said her department was "engaging" with municipalities, and some were now paying their outstanding amounts.

She said a decision would be taken "in a few weeks" to re-align water boards and the areas they served, a plan which included the possibility of "cross-subsidisation" among these entities.

  • Christopher - 2012-05-16 21:58

    Why am I not surprised? Just another sector that the anc have managed to stuff up! But dont worry we will just pay more taxes to make up for their bugger ups. Guess that means everythings going up again folks! Happy days (NOT)

      Ian - 2012-05-16 22:26

      The worrying factor is, the monies have been paid over by the consumer, otherwise the water gets cut off, so obviously the money has once again disappeared into the 'black hole'(no pun intended)!

      Koos - 2012-05-17 00:50

      Better on the se die ANC(dit sluit wit en sart in), ewe korrup.

      Alan - 2012-05-17 09:16

      (Alan2) Don't you just love the word 'engaging'? It's an ANC favourite, meaning 'We are talking about it' - something the ANC is good at doing, but with no consequent action whatsoever. It really is time for change in SA, for all our sakes.

      Davin - 2012-05-18 00:48

      Why do you sound so upset about it. You voted for it ;)

  • Godfrey - 2012-05-16 22:16

    Please name and shame the municipalities

      Peter - 2012-05-16 22:22

      Doubt they would do that since they own the municipalities and it would just make them look even worse than they already do

      Godfrey - 2012-05-16 22:34

      @Peter, you are right, I should have known, when "Molewa said her department was "engaging" with municipalities"...engaging being the key- word.

  • bernpm - 2012-05-16 22:16

    ...........but given that we are able to collect... over R8bn... this debt is just about 10% of that." so.....?? It all depends "overdue" by how long????

      Sharon - 2012-05-16 22:21

      60+ days - The same problem exists where Eskom is not paid. Why not cut out the middle man and pay the supplier directly? Close the door on fraud and theft at municipalities. They have been proven to be ineffective and inefficient.

      Koos - 2012-05-17 01:05

      Sharon: The municipalities use electricity and water as a cash cow to fund their incompetance and looting. I buy my water directly from Rand Water. If I don't pay they close the tap. I pay less than the guy that buys his water from the municipalities. The same goes for electricity. Eskom sells the power to the municipalities on average 45% less than what you pay. Then on top of that they are on a maximum demand system whereby they(municipality) are build different rates for different times of day. You, the user pay the highest of the three. Then, after 10PM the municipalities pay a flat rate and you pay the normal high rate. Perhaps one day someone can write and article to explain this.

      Koos - 2012-05-17 01:24

      Visit for the tarrifs that municipalities are paying. Compare that agianst what you are paying.

  • Dave - 2012-05-16 22:33

    Has Minister Molewa ever heard of the term CREDIT CONTROL? If you don't manage your debt, you don't deserve your job!

  • martha.stclair - 2012-05-16 22:51

    so.... cut off the people who haven't paid.... If you have then there should be no issue, well that would be true if our government wasn't a tad corrupt!

      Robert - 2012-05-17 00:16

      Unfortunately it is illegal to cut off a person's water supply (for health reasons).

  • Jim Jam - 2012-05-16 22:57

    That's not bad for the whole Western Cape. That amount alone is owed by Pretoria municipality and Western Cape is only 60 days in the rear. Wish we could be governed by the DA.

  • Mike - 2012-05-17 05:15

    My concern here is the statement about re-aligning the areas covered by a particular board to ensure cross subsidization. The same ministry is now talking about redress and equitable redistribution of water, claiming that where sufficient domestic water cannot be allocated to PDI's it will have to be taken from existing users. Pretty much the same wording used in Zim to justify diverting supply from affluent suburbs.

      Koos - 2012-05-17 05:28

      We are already paying for the ones who is getting everything for free the past 300 years, not only water. How do you think they can drive a beemer on their salary? Next time they show a township check carefully. The taps will always be open. Running water everywhere. People that pays for things don't behave like that.

  • braamc - 2012-05-17 06:13

    Time to consider stop paying taxes and for non-existent services. The theft and corruption has to stop

  • Michael - 2012-05-17 06:53

    "ANC Landmark Successes" - any chance there could be a shorter book anywhere in creation?

      John - 2012-05-17 07:11

      Even "Italian War Heroes" is a longer read. LMFAO

  • Christelle - 2012-05-17 07:21

    Cute! We pay our water and lights by the municipality's don't pay their bill... What type of example they setting???

  • Gerald Jordaan - 2012-05-17 07:36

    Nice!!Typical..ANC don't honour your obligations..waste money on fat salaries cars hotels flights and then steal what's left!!BUT whatever you do DON'T PAY your bills!!

  • Fanie - 2012-05-17 07:50

    So it's fine with her that blacks have stolen R1,1 billion, it's only 10%!! Totally useless!!!

  • Rob - 2012-05-17 08:11

    Cross subsidies, guess what! Or is it about economic freedom, the freedom not to have to pay?

  • johan.vandermerwe.33 - 2012-05-17 09:20

    LONDON TIMES - QUOTE OF THE WEEK Interesting point of view Affirmative Action: "South Africa is the only country in the world where affirmative action is in the favour of the majority who has complete political control. The fact that the political majority requires affirmative action to protect them against a 9% minority group is testament to a complete failure on their part to build their own wealth making structures, such that their only solution is to take it from others." Finally, a word recently coined to describe South Africa's current political situation. Ineptocracy (in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

  • Seun - 2012-06-01 08:06

    It is with great concern that I notice how Council frivolously ignores the Local government Municipal System Act 2000 (Act 32 of 2000) which defines the responsibility of the Council “to provide for the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities and ensure universal access to essential services that are affordable to all……”\r\n\r\nThe following major concern in respect of the budget for the ensuing year raised.\r\n\r\n1.   Capital expenditure budget for 2011 (99.811m) represents 38.04% of operating revenue whereas the 2012 budget for capital expenditure now reduces to R 57,412m which represents a decrease on capital expenditure of 42, 399m (42.48%)\r\n\r\nThis amount to renegade by Council in its obligation to service delivery to residents in terms of the Municipal Systems Act 2000 (Act 32 of 2000)\r\n\r\n2.   Employment related cost in 2011 amounted to 55,902m which is increased to 82.656m in the 2012 budget. This represents an increase of 26.754m (47.86%) which raises concern in that employment related costs vs. total operating budget revenue increases from 34.39% (2011) to 37.37% (2012) and is sub rosa. Even taken into account the additional posts authorized to be advertised and filled does not justify this exorbitant increase.\r\n\r\n \r\n\r\n3.   The April year-to-date financials submitted to Council clearly stipulated the Budget operating expenditure as 167.954m yet in the actual budget it is reflected as 162,085m (an unaccountable and unexplained difference of R 5, 869m). The capital expenditure year April year to date financials is reflected as R 99.311m whereas the budget reflects R 99.811 (An unaccountable and unexplained difference of R 500 000). Somewhere along the line Council is being misled with incorrect financial information.\r\n\r\nService delivery to residents is therefore being the sacrificial lamb at the altar to increased employment related costs, which principle I cannot condone and wish to place on record that I exonerate myself to the approval of such budget (2012/13) as I would be betraying the voters that I represent and the Municipal System Act 2000 (Act 32 of 2000)

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