Note to editors: Please find attached English and Afrikaans soundbites by Cllr David Ross and Sesotho by Jafta Mokoena MPL.
Late payment in servicing debt to Vaal Central Water (VCW) resulted in a three-day water supply shutdown for residents of Nala Local Municipality. Late and inconsistent payments in the 2023/24 financial year highlighted the municipalities financial dilemma as 46% of the expenditure budget is paid for employment-related costs and salaries, as opposed to prioritised water supply payments.
Therefore, the water shutdown has undermined the municipality’s commitment to improve the funding model for Nala and to achieve positive outcomes in driving economic development and job creation to mitigate inequality and attract investment in our municipality.
To address the financial dilemma and water-shedding, the Democratic Alliance (DA) has called for a meeting with VCW and the Provincial Treasury to assess the non-payment to bulk service providers and make specific proposals in managing prioritised bulk supply payments.
Our proposals are based on the Local Government Municipal Finance Management Act. The Act obligates Water boards and Eskom to furnish within 15 days after the end of each month a written statement to Treasury. The statement sets out the following for each municipality providing municipal services:
- The amount to be paid by the municipality for the month, and for the financial year up to the end of that month.
- The arrears owing and the age profile of such arrears
- Any actions taken by the organ of the state to recover arrears.
The DA engaged with VCW and requested the CEO, Dr Limakatso Moorosi, to call an urgent meeting to discuss the non-payment of Nala and other Municipalities, affected by water supply limitations and valve closures.
We will urge priority to the provisions in the Constitution, section 139(5) of the Constitution and section 73(1) of the Systems Act to ensure the basic needs of our community are addressed and have access to at least a minimum level of basic services.