The Amathole District Municipality has threatened to cut off the water supply to several provincial and national government departments and state entities in its jurisdiction due to the crippling nonpayment of debt now sitting at more than R200m.
On Friday, ADM said the escalating unpaid debt was putting a strain on the provision of services, particularly the supply and maintenance of water and sanitation services, in struggling communities.
It also affected the municipality’s ability to upgrade ageing infrastructure and respond to service interruptions, and efforts to expand indigent support programmes ensuring that the most vulnerable received services.
The biggest culprits are the provincial health department, which owes more than R27.9m, tertiary institutions, which owe R24m, public works, which owes R22.5m and the Eastern Cape Development Corporation (ECDC), which has a debt of R13.6m.
ADM spokesperson Sisa Msiwa said they were concerned about the debt owed by government departments, resulting in financial strain that threatened the provision of essential water and sanitation services.
“Millions of rand in unpaid municipal debt by government institutions are jeopardising ADM’s ability to provide these critical services, particularly to indigent and vulnerable communities,” she said.
“As SA commemorates Human Rights Day, ADM reminds all stakeholders that access to water and sanitation is not a privilege, but a right.
“The municipality remains committed to upholding this right, but it requires financial accountability from all sectorsto sustain services for the people of Amathole.”
To avoid service disruptions, Msiwa said, the government entities and businesses involved were required to:
• Pay their outstanding balances immediately to prevent disconnection;
• Engage with ADM for structured payment arrangements and to ensure continuous and reliable service delivery; and
• Ensure compliance with municipal finance regulations to avoid legal consequences and debt escalation.
Co-operative governance and traditional affairs MEC Zolile Williams’ spokesperson, Pheello Oliphant, said on Sunday that they supported the Amathole District Municipality’s move to cut off water supply to government departments and other entities for nonpayment.
“ADM is implementing the credit control and debt collection policy of the municipal council.
“It is part of the revenue collection plan of the municipality,” Oliphant said.
“The municipality is on the financial recovery plan (FRP) under the supervision of the provincial treasury, so encouraging government departments and government entities to pay for water they are using is an integral part of the revenue collection for the municipality.”
He said government departments across the province should pay for the services they received from municipalities, which would result in an improvement in the financial health of many municipalities.
“Many municipalities in the province are in financial distress because of nonpayment of rates and taxes by residents and government departments and entities.
“Universities, TVET colleges, museums, development agencies, hotels, B&Bs, restaurants, food outlets, garages, gymnasiums, funeral parlours, abattoirs and so on must pay for the services they get from municipalities, so these can be sustainable,” Oliphant said.
Daily Dispatch
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