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.

MEDIA ENQUIRIES:
Gareth Morgan MP - 072 528 3910

Ross van der Linde - 076 543 7254

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)  R653 416 344

(1)(a)(ii)(bb)  R608 630 712

(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

Statement issued by Gareth Morgan, MP, Democratic Alliance shadow minister of water and environmental affairs, April 6 2010

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